A life insurance cover helps you secure the financial future of everyone dependent on your income in the event of your death. Nobody can help overcome the loss of a dear one, but imagine that along with this loss the surviving members of the family are hard-pressed to maintain their lifestyles because they were partially or fully dependent on the income of the deceased. Getting an adequate life cover is absolutely essential if the sum of the total value of your assets (other than the home you stay in) less your total liabilities (including any home loan, car loan or personal loan you might have outstanding) is less than 150 times your current monthly expenses. The shortfall would be the recommended amount of life cover you should seek. At ApnaPaisa, we help you reach out to a maximum of 5 service providers who will propose alternative plans that you can compare based on:
- Life Cover (also known as Sum Assured)
- Annual Premium
- Additional Riders Offered
Often customers get lured into combining their life cover requirements with an investment objective. We do not recommend this approach because it is always a lot more affordable to opt for a term insurance policy and invest the savings on the annual premium into any savings instrument of your choice - be it PPF, Fixed Deposits, Mutual Funds or even shares.
What is the process to get a life insurance policy?
Although now banks offer bancassurance - the insurance agent remains the primary source of insurance information and guidance.Apnainsurance.com Research Bureau
20 Dec 2007
Until a few years ago, life insurance policies were only sold directly by the insurance company's agent.
Not anymore. Life insurance policies now are being also sold online - directly by the insurance company as well as the online marketplaces.
Additionally, now there is the concept of bancassurance - the sale and distribution of insurance products through banks. Many insurance companies have tied up with banks to sell insurance products. One of the advantages of purchasing a policy through a bank is the enhanced convenience of receiving financial advisory services under one roof. It also means easy access for premium payments and claims, if any.
The insurance agent is not obsolete. He/she is still the main source of insurance knowledge and advice.
So, having said that, what can you expect from your insurance agent?
Some of the primary services that an insurance agent is expected to provide include:
- Provide reminders to pay premiums and supply receipts
- Help make changes in address, nomination, should they occur
- Aid the process of assignment
- Assist with loan applications and related formalities
- Revive lapsed policies
- Facilitate the survival benefit process if payments have been delayed
- Assist in claiming death benefits, if required
See also:
Dos and Don'ts while buying life insurance