How to Obtain Life Insurance

If you are the only earning member in your family, you are naturally worried how your loved ones will continue should anything happen to you. You may now be in good health but if you get sick and die, or you get paralyzed and immobile and you need some help the whole day, your family will need enough finance to tide over.

You may worry whether they will be short of money, or whether they will be able to continue with the present lifestyle when you are not around. Or if you are getting on in years and are worried about death taxes, funeral expenses and so on, you can set your mind at rest by purchasing life insurance. You can buy a life insurance which will cover all these.

Everyone should have life insurance. You can buy insurance for you or your loved ones as well. You can choose an amount which will be the face value of the insurance policy. You can buy enough policy to cover not only your death dues but leave enough for your family to live on comfortably.

Some of the questions that you should consider before deciding on an appropriate life insurance policy are:

  • Are you looking at life insurance as retirement planning or is your objective is to provide for your family?
  • What is minimum standard of living that you would like your family to maintain after you are gone?
  • What is the level of education that you need to provide for your family?
  • Is your spouse’s income adequate enough to provide for the daily expenses of the family?
  • Do you have any loans, mortgages or business debts that need to be paid back?
  • Are there any assets that you have that you can leave behind?

3 Basic Tips in getting a Life Insurance :

  1. Determine how much Life Insurance is enough or needed by you and your family. Consider buying Life Insurance that is equal to 5 to 7 times your current annual gross income.
  2. Choose the right insurance company. – Verify/validate with the Insurance Commission if the company is licensed to do business. Check the company’s financial strength.
  3. Pick the right insurance agent. – An insurance agent should be willing and able to explain all details of the policy/ies being recommended and which you are considering. The agent should be licensed as well.