Monday, 14 January 2013

How To Buy LIFE INSURANCE? (Conclude Properly)

Let us start by knowing the common example on how Insurance is generally taken by people, with some common question and answer, and than understand why proposed method is an correct way of buying Life Insurance and is proper answer to this most IMPORTANT QUESTION of many.

1)  Answer is very simple do some research and recommended policy online and then checks on the online comparing website which company gives those policy at cheaper rate we buy it online.

2) Which many of you adopt, where you have your papa’s Insurance Agent and take the Insurance Policy which gives to you as he is trustworthy person who have serviced you’ll genuinely till now.

3) Ask couple of your friend which is the best policy in the industry or which policy he have taken and buy the same type of policy from that same agent or from other person even with knowing how is his after sales service on the same (Does he comes and collect the yearly cheque naa…).

4) Last and common scenario where Insurance Agent or Companies representative  have approached and have informed you that with Insurance you can save your Tax under section 80-C by buying insurance and in-fact truth even where you do get benefited even and you buy the policy.

B) Question & Answer
Q. Why do you buy any product?
A.  Again answer is very simple, we buy it because of our need.

Q Then why don’t people buy LIFE INSURANCE as per their need or any Insurance product as per their need.
A. We came to know quite interesting and  common answer from everybody which is an exact answer to “HOW TO BUY LIFE INSURANCE”

First Thing which everybody never knew was how to conclude or know what their NEED on Insurance IS?, Which is not the case in other product we buy, & Secondly we do not have the knowledge of the product which are available.

"You all would be surprised to know that even IRDA say's same thing that INSURANCE should be sold only after NEED ANALYSIS done. Not sure about it whether there are circular given by IRDA and have made it mandatory but we are sure IRDA have given this in their guidelines that Insurance is sold only after doing NEED ANALYSIS in June 2010 which were published in news paper even, which Insurance Companies do follow but some time you may find Agents not doing it."

Hence, True answer to our post question is, know your NEED and derive the amount of Insurance you require at that point of time. It is said that if Insurance Product is bought as per the NEED and Correct product is selected it give maximum satisfaction and This is explained in below points for better understanding.

1)   One should first know HUMAN LIFE VALUE of the person which is based on certain calculation and buy only that much amount of Life Cover for him/herself.

2)   Generally It is said that Life Insurance must be at-least 8 to 10 Times of your yearly income which gives approx figure (though it may differ from person to person and stages of life) but still is help for person.

3)   Get the NEED ANALYSIS Process of the person done with some professional and buy the CORRECT INSURANCE POLICY as appropriate product (Selecting a product such as Term, Whole Life, Endowment Policy, etc is most important) 

4) Last but not the least, One should also take care that person slowly and gradually reaches the Life Insurance Amount and must check his premium paying capacity in longer prospective.

At Times you may find some Insurance People/Agents doing your NEED ANALYSIS even but product comparison is not within their limitation. For which CFP and Similar kind of Service provider are better choice who may charge you some money. But this money spend will help you to get maximum satisfaction and peace of mind and will ultimately save your money over a period of time. 

It better to pay and ensure you get the CORRECT POLICY of your NEED and do not regret later by paying much much more in comparison on your decision taken.

No comments:

Post a Comment