Mrs. Sharma had just lost her husband to a terminal illnessA disease that cannot be cured or adequately treated and that is reasonably expected to result in the death of the patient within a relatively short period of time.. He was wise to invest in life insurance to secure her and their 4 year old son. Mrs. Sharma realised, through her husband’s wise financial planning, that life insurance really was a life saver.
Although she had a decently paying job, she never quite had to worry about financial planning while her husband was alive. Well, it was time for her to get a life insurance policy of her own to secure her future and the future of her son. For the first time, she had to start thinking of long term savings and the protection of her loved one’s future. She was clear that life insurance is a very healthy option. The question, however, was how does she get life insurance? Whom does she approach? Can she invest in a policy herself or does she need to do it through an agent? There was no time for her to just sit and wonder. She started her research on the Internet, took advice from her friends and spoke to other who already had life insurance. She had to get the best policy to suit her long term needs and the future she envisioned for her young son. With all the information at her disposal, she had chosen the course she was going to take. She started to look at the information on how to choose the right company and about the various channels of distribution, deciding on the best channel to use.
Mrs. Sharma reads:
‘Life insurance products are sold by companies that have been licensed by the Insurance Regulatory and Development Authority (IRDA). The products are sold through distribution channels that are licensed by IRDA as well. These individual agencies, brokers, corporate agencies or even banks have to follow certain codes of conduct when dealing with and helping a person choose a suitable policy.
It is important to select a life insurance company which is financially solid, keeps its customers interests at the forefront and provides good quality service.
The second important thing to do is to select a suitable channel to invest in life insurance. The representative of the channel should assess the various needs of the individual that can be met by life insurance and help the person make decisions like how much to protection cover is required, what is the most suitable policy, the most suitable premiumA regular payment made to the insurance company to keep the policy in force. payment options.’
Previous:
Life Insurance Terms You Must Know
Next:
Things you must know about your intermediaries