Hard working and smart Mr. X died young, in a road accident, leaving behind his hapless wife and two small children. He worked in Hyderabad where his wife was offered a job to make both ends meet, but she was too emotionally broken to live in a faraway place.
The whole family had to suffer unimaginable hardships after the sudden and tragic demise of the sole earning Mr. X. The young widow along with small children ran into very pitiable condition; finally, the elder brother of the ill-fated lady had to support them. A significant term insurance policy of Mr. X would have avoided all these misfortunes.
Term insurance is damn cheap. At an early age, you may get insurance of Rs 10000,000 for around Rs. 10,000 per annum. Initially, everyone has a small salary.Therefore, very few can afford expensive insurance policies to protect their dependents, and cheap term insurance policy becomes a natural choice.
However, one must do due diligence in selecting a right insurance company. Here are some tips for making right decisions.
1. Compare premiums of sound insurance companies on the internet.
2. Buy Online. The insurance companies don’t pay commission to agents on the online policies, so they are cheaper than policies sold by agents. There is also no chance of any manipulation in your application form by unscrupulous persons.(Please read – Pitfalls of buying insurance)http://mytruedreams.in/archives/1630
3. Don’t opt costly riders.
4. If you decide to purchase insurance from an insurance agent, select a full-time insurance agent. He will always be available to serve you. Persons, doing insurance for part-time income, often throw the towel.
5. Reveal all facts honestly. Don’t hide anything otherwise insurance company will reject the claim when your family members will need it most.
6. Buy separate policies for each dependent to avoid fight among them for the insured amount.
7. Chose an insurance company having good claim settlement ratio.
8. Opt for monthly installments initially. Insurance companies do due diligence after taking the first premium. Your money remains blocked during their tardy procedure. Further, you will lose less in the case of online fraud.
9. The people above 50 years may opt for accidental death insurance. Their premium is dirt cheap, and they don’t ask medical test.
We shower precious gifts to our nears and dears on marriage. Will it not be an excellent idea to gift them a term insurance of Rs. 50 lacs or Rs. 1 crore?