UNDERSTANDING LIFE INSURANCE
Comparison of life insurance companies
Most people know insurance is the best financial safety net to protect your family and loved me ones in the event that you die prematurely. Life insurance companies vary in many ways. However, we think it will be too expensive or compacted. Before you decide to opt for any, try and find out the various types and the pure comparison of all the types of life insurance Companies.
Here, we compare life insurance companies with certain plans.
- Term life insurance vs. Whole
- How much to buy
- How long it should last
Term life insurance vs Whole
Most assurers always ask the question “what type of life insurance policies should I choose?” Term life insurance or Whole insurance? The biggest difference between the two is that the whole life last for your entire life while Term life lasts for a specific amount of time. Term life insurance is frequently called “pure” life insurance.
Most people think about it when they imagine how a life insurance policy works. You pay a monthly premium, typically about one fourth the cost of whole life premiums in exchange for the promise that your life insurer will pay out a pre-set death benefit (also known as your “coverage” or “face amount”) to your survivors (also known as “beneficiaries”). That’s pretty much it. If you’ve bought other insurance products like auto insurance or homeowners insurance, it’s basically the structured the same way.
Whole life insurance has a large coverage and also a high amount of beneficiaries. It also has a savings component called the “cash value.” This savings component changes how whole life insurance functions and is the reason whole life insurance can last your entire life.
Remember that term life insurance is specially designed to combat against emergency of your family, to help them deal with debts and to replace lost income.
How much to buy
- The amount of money you put into this category is totally up to you, and may change depending on how much you can afford. Complete college fund for every child (remember to adjust for increasing college costs)
- Complete retirement fund for spouse
- Lost income (for either one to two years or longer)
How long it should last
Your life insurance should cover your longest financial obligation. Most term life insurance companies provide terms in five year increments that is 10 year term, 15 year term, up until 30 years. If your doesn’t fit exactly into one of those term lengths, your best bet is to round up.
For instance, if it lasts for another 31 years, pick a 35 year term. If your financial obligation ends before your term life insurance policy expires, you can cancel your term life insurance policy. This us because you don’t have to pay for extra years coverage you don’t need.
The following seven steps are necessary to be followed when you choose a life.
- Get your quotes( compare with other companies to see what they are offering)
- Pick a policy
- Fill out the application( read all the terms and conditions)
- Get your free medical exam
- Have a phone interview( clear all your doubts)
- Wait for approval & final rates
- Sign the policy
Here are a few life insurance companies in India that you could choose from.
List of Life Insurance Companies in India
Claim Settlement Ratio
AEGON Life Insurance
Aviva Life Insurance
Bajaj Allianz Life Insurance
Bharti AXA Life Insurance
Birla Sun Life Insurance
Canara HSBC OBC Life Insurance
DHFL Pramerica Life Insurance
Edelweiss Tokio Life Insurance
Exide Life Insurance
HDFC Standard Life Insurance
ICICI Prudential Life Insurance
IndiaFirst Life Insurance Company Ltd – India First
Life Insurance Corporation of India
Star Union Dai-ichi Life Insurance
Tata AIA Life Insurance