In today’s date, insurance is viewed as an extremely overrated subject. This is mainly because of the misconceptions that people carry in their minds about this topic. There was a time, when insurance was held in high regard because it was known for offering an absolute safeguard against all kinds of risks that affect one’s life and property. However, rising competition, increase in the number of service providers and unhealthy marketing tactics has led to a shift in its focus.
Today, even if a genuine provider is to approach us with a valid insurance cover, the first thing that we prefer to do is to turn a deaf ear. The end result of this is that half the population remains uninsured, while the remaining half is caught between the wheels of less useful policies. Hence, choosing an appropriate insurance policy without being taken for a ride is extremely vital.
Understanding your Needs:
Each and every individual has a different set of needs and requirements. Likewise, the number of dependents also tends to differ largely. Under such circumstances, making a less informed decision is certainly not the right thing to do. People find it more comfortable to blindly follow the masses. They find a great pride in signing up for policies that are most popular in the market. Insurance agents are equally prompt in pushing such policies solely because of the hefty commission cuts they get to enjoy on such sales. Eventually, when the time to benefit from an insurance cover arrives, either the policyholder or his family members realize that the choice has gone miserably wrong and nothing much can be done about it.
Protection v/s Investment:
There was a time when insurance policies were floated in the market solely with the objective of offering a sufficient cover against unforeseen risks. However, the rising demand in the market has motivated insurance companies to come up with policies that serve the purpose of investment as well. Hence, while getting yourself insured, it is essential that you first ask yourself as to why you are considering an insurance cover in the first place. Once you have a clear cut answer only then should you shortlist on a policy. When this is done, your individual requisite of protection, investment or a combination of both will be rightly served.
Income is the Key:
Yet another crucial factor that plays a central role while deciding on an insurance cover is the prospective policyholder’s income quotient. Both the level and graph of income of every individual is way too different from one another. Insurance is generally not a onetime activity. You need to make it a point to pay timely premiums so as to enjoy its benefit either on the death of the policy holder or on the maturity of the policy. Hence, at times income can act as an active deciding factor. After all, a high premium policy that is suitable for a successful businessman may not help the working class in anyway.
Online v/s Offline Insurance:
No sure shot conclusion can be laid as to which mode of insurance, online or offline is more reliable. However, both these channels have their own set of pros and cons. If you are going the online way, then you need to make it a point to study every term and condition with utmost concentration. If you have any queries, it is better to get them solved before zeroing down on any insurance cover as such. On the other hand, is the offline mode, which is equally challenging. In this case, the insurance company’s marketing personnel and agents try to bombard you with heaps of information, which in the end creates unnecessary clutter in your mind. Many a times, they tend to push those policies that are suited to their personal interests instead of paying heed to the policyholder’s short and long term requirements. Hence, in either case, staying alert and thinking well before taking the final call becomes mandatory.
All said and done, if you are planning to get an insurance cover for yourself, then make sure to take all the aforesaid factors into consideration. For the correct calculations about your insurance premium and coverage of your life value, visit Findvise or download the app. With the use of the most scientific methods and AI, this robo advisory platform will correctly calculate the best for you and that too in an unbiased way.