Things to keep in mind before buying insurance plan

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Insurance plans are gaining more popularity as citizens are becoming more and more educated. This is the reason a number of new insurance agencies have arrived in the market and each one of them claims better facilities than others. The result of these new companies is that the customer has become more confused than ever about which insurance plan to choose. But there is nothing to worry, we have come up with few points that you can keep in mind before buying your insurance plan. This will help you in choosing the best plan for you while rejecting those which are less beneficial for you.

  1. Calculate Policy’s total worth

First and foremost, you must decide the total worth of your policy. It’s important to decide the amount of your policy with care as the policy can become a burden to you if its cover is not decided properly. As per the experts, the amount of policy must be 12 times of your annual income, minus your investment Assets, plus liabilities.

  1. Calculate Ideal tenure

Deciding the ideal tenure for your policy is the second most important thing to ensure smooth gains from your policy. Experts say that ideal tenure is Retirement Age – Current Age.

  1. Mode of Purchase

Whether to buy your policy online or offline is also an important choice. If you choose to buy online, you will get your policy at cheaper rates as you won’t need to pay commission to the agents. But, the disadvantage of doing this is that you alone will be responsible if you skip some hidden terms or conditions. If you purchase through an agent, you can put the blame on him.

  1. Fill the form as mentioned

It is a common tendency that people feel worried to disclose their assets in the insurance form. But the thing that they don’t understand is that it may lead to problems later. So, it is suggested to disclose everything in the form.

  1. Make a smart choice

You should consider buying two small policies rather than opting for a single big policy. The advantage of this would be that you will be able to discontinue one policy while continuing the other.

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