How To Compare Life Insurance Quotes For Families

‘Insurance is the subject matter of solicitation’.

What this means is, that insurance is something that has to be asked for, or requested. It is not something that is to be sold. Quite ironical, when one considers the fact that this statement is seen and heard in literally every insurance product advertisement that does the rounds on print, TV and radio!

But this is the first, and most important tips when it comes to choosing a life insurance for your family and yourself. It denotes that it rests upon you, as a potential customer to choose the policy most suited to your needs, only after the insurance agent, product and company have your complete trust. This is important because the idea of insurance is chiefly to provide financial security to the dependents, in the event of the death of the sole breadwinner. Life insurance, therefore, even if in the name of a single policyholder, is basically for the dependents and family.

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There are two kinds of insurance. Life (sometimes known as whole life) and term. Term insurance is usually taken for a stipulated period of time and is paid out only when the policyholder dies within that time period. While this the basic difference, each category holds hundreds of variations. And it is incumbent on the individual to pick the right one. Here, then, are a few basic guidelines that will help make an informed decision.

1. Face It: To consider a life insurance policy is to think of one’s own death. And the process of choosing the right product among hundreds is boring, confusing and sometimes both. But these are facts that one needs to accept upfront. This will make the rest of the process easier.
2. Need Based: Make an estimate of how much it would take to sustain oneself over a 12 months period and multiply this amount by 25. This would roughly be the minimum cover that one needs to plan for while choosing a policy.
3. Start Early, Pay Small: Consider policy premiums a fixed, non-negotiable expense. To start early, thereby lowering the premium payable would be a prudent decision, which will also help in maintaining discipline when it comes to payments.
4. Mutual Trust: Trust works both ways. It is extremely important to be truthful and provide all information requested by the insurance company regarding one’s health, medical information, and personal condition. To give an insurance company an excuse to refuse to pay the money, is foolish. Alternatively, some insurance companies make the claims history of all of their policies public, thus gaining public trust. For example, AXA makes is claims history public, while Bupa does not. But in most cases the companies will provide this information on request.
5. Questions and More Questions: One must not shy away from asking questions at the cost of sounding uninformed. Does the policy provide cover for terminal illness? Is it better to take two policies for oneself and one’s spouse or just one? Are there any free extras that are provided in the policy?

Comparing life insurance quotes for families must be based on the above criteria to avoid stress and fear of making the wrong choice.