FAQ in Life Insurance

When you plan to take up life insurance coverage a number of questions pop up in mind and you will definitely look for an answer to them. Most of the life insurance companies have these frequently asked questions answered on their websites and the customers can always go through them and find answers to their questions regarding life insurance. It is always better to clarify the doubts before you take up any insurance policy. Some of the most commonly asked questions and their answers are as below:

  • The first question that pops out is why do I need coverage for life?
    The life insurance is necessary so that your family and dependents are financially secured after you are dead.
  • How much life insurance is required?
    It is mostly advised that the earning member of the family should buy an insurance policy which is ten times their annual income.
  • From which provider should I buy the life insurance policy?
    The life insurance policy is a long term investment and hence one should look for a company that will be around for at least 20 to 30 years to give you the assured benefit if the need arises. One should also look at the financial stability rating of the company from which they are buying the policy.
  • What is the advantage of taking Term Insurance?
    It is the easiest of the life insurance policies which can be bought for a term of 10,15,20,25 and 30 years. The premium remains the same for the entire term and in case the insured dies within the term period the beneficiary is paid a lump sum amount without any lengthy process and hassles. The premium is comparatively less and is easy to afford.
  • Is term insurance affordable?
    The term insurance has become very popular with people nowadays as its premium is very less and is easily affordable. The customers are given the facility of paying the premium monthly, quarterly, and yearly or at one go.  This flexibility in payment of premiums makes it easily affordable.
  • Who all can be named as beneficiary?
    The insurance company only allows those persons as beneficiary who are dependent on the insured financially and those whose money you owe and need to be paid back. Friends, relatives and acquaintances cannot be beneficiary. However, charity can be a beneficiary if there is a history of you giving away charity.