Gone were the days when the word ‘insurance’ conjured up images of a small lamp protected by two palms. Insurance meant Life Insurance. And Life Insurance meant LIC, till just a few decades ago. And then slowly the insurance market opened up. Today, there are tens of major insurance companies and literally thousands of insurance products that range from simple life insurance to term insurances, insurances that aid more as savings and investment and many other options.
image credits:ilifeinsurance.org
Choosing the right life insurance policy is like placing hundreds of highly essential items on the table and then being asked to choose the ‘right’ one, when they all seem equally useful and important to have. Which is why trying to choose the right insurance product without a specific process or plan in mind is bound to make one sick. The following steps, if undertaken casually, but thoroughly, will help one make an informed decision without the risk of mental fatigue or physical exhaustion;
- What Do I want? Now obviously this question does not mean ‘which policy do I want?’ What it actually means is that one needs to clearly think about their financial goals. Is the goal to leave a legacy for those one leaves when one is gone? Or is it for savings and the smart investment for the foreseeable future? This will eliminate at least half of the options. In other words, what is the utility of the insurance product that one wants?
- Is what I want really necessary/important? Now here is where one must ask the tough questions. Financial goals are fine. Grand schemes for financial security can be literally found everywhere. But what about one’s own needs? And what of the financial constraints? How much can one really afford at this point of time?
- Put it all on the table. Now comes the penultimate step. It’s time to put all the options, based on one’s needs, goals and limitations, on the table. Bringing all of the choices together and then seeing them from different perspectives is the best way to let one’s mind decide on an ideal choice. One part of the mind might place it under an expense while another will make this expense a subset of a larger need; financial stability. To sit back, relax and watch one’s own mind come to a conclusion is a glorious feeling.
- How likely is each of the options to satisfy my needs? One way of making it easier to choose is to try and make each of the options fail by thinking of all the minutes, risks or expenditure Vs the benefits. This will be the final acid test.
- I did it! This stage has to be reached eventually! The best part of the process is that when one makes the choice after such a thorough introspection, the act of making a choice itself feels like a reward!
- I did it again! But the story is never really over. Opting for insurance products is not something that is unchangeable. Based on an evaluation of one’s needs, wants and financial constraints at specific intervals, one can make different choices or tweak the existing products to better suit one’s needs.
And that’s how one can compare life insurance without getting sick!
Life Insurance Policy Information In India 