Terms you should know when you buy insurance for self or family

Terms you should know when you buy insurance for self or family

Since you will find a dozen or more types of insurance schemes, choosing the type of insurance that is most suitable to you can be a little confusing. Yet, just focus on certain factors and you can make it an easy process.

  • When it comes to life insurance, there is the term and the permanent ones.  You should opt for the term life insurance if you intend to have it only for a certain amount of time. For example, this insurance is best for your kids’ education needs some years later. If you have a debt which you intend to repay say after 20 years, you can choose a policy for the same.
  • Permanent life insurance is as it says till the time of one’s death. The benefit of a permanent life insurance is that if the insured dies within a month of taking the insurance or after 30 years or so, the beneficiaries will get the claim amount.
  • You can also choose convertible insurance schemes which can help you to convert term life insurance policy to a permanent insurance scheme that too without having to undergo medical examination or tests. The premium that you will have to pay will be a higher amount, though.

Points to consider while buying insurance for your business

Do a check on risks: The first factor that insurance companies check is for the amount of risks that a business poses. Referred to as underwriting, it is the basis for the insurance company to accept or reject the coverage that you ask for and contains two terms, premium and deductible. The former is the amount that you need to pay for the insurance and the deductible is the amount you pay during the time of the claim. Both these amounts are inversely proportional. Hence asses your risks and then decide carefully.

Do a window shopping: You should find about all the relevant business insurance policies available today and do a check study of different insurance schemes with your risks. Each insurance company differ in terms of cost and other factors. If you are seeking the help of an insurance professional, look for specialized experts who work in specific areas. For example, if you have a textile business, look for insurance professionals who are experts in textile business.

When it comes to choosing a good business insurance plan, seeking the help of a reputed, knowledgeable, licensed insurance expert can be of immense help.