How to choose a Life Insurance Policy in Nepal?
Choosing between the different life insurance policies in Nepal can be an intimidating task for many people, from couple of insurance quotes to number of meetings with the sales agents. However, the right life insurance policy can make your mind more comfortable and give you and your family financial security. Here are simple things you can follow to make the process easier for yourself.
Length of the Coverage
Before choosing a life insurance policy in Nepal, it is important for you to estimate your families financial needs and determine the regular amount of income your family needs. This will help in deciding how much life coverage is required for a desired monthly income. Once you have determined the length of the insurance policy, it is essential to know the types of life insurance policies available in the market of Nepal.
Two basic life insurance policies are available in the market: Term and Permanent. Term policies are for a specific time usually between 10, 15 and 25 years. This can be a reasonable option for young people, because it is affordable and meaningful. Permanent life insurance policies comes in the form of variable life, permanent life and universal life insurance. Prices are flexible and have cash value built-in. The accumulated cash value can be used to finance your policy premium or as a pension income supplement.
Another important factor in choosing a policy is to look closely at your finances and the funds available. Many people tend to engage in policies that go beyond their needs and financial capacity and lead to high commitments. It may be wise to regard your life insurance as a fixed and non-negotiable cost, just as you would be paying for your home or car. You can manage how much you need to invest in life insurance by taking into account expenditure while eliminating irrelevant policies.
Hassle Free Pay-Outs
The right insurance partner will make a lot of difference when you are in a difficult situation. Most insurance policies have complex payout schemes that can take weeks or even months for claimants. It pays to investigate carefully the number of life insurance products on the market to make the best choice. As the saying goes, you do not know what you do not know, so try to ask your life insurance provider the right questions to fully understand the scope of your insurance and the terms of the agreement.
Compare and Contrast
With proper planning and the right life insurance partner, you and your family can achieve your financial stability throughout your life. In fact, well-structured insurance policies are often the best investment options, as they provide dependents with a regular monthly income in the event of a premature decline. Look at the range of life insurance options available on the market and compare each other thoroughly by checking and balancing. Choosing the right life insurance provider can be subjective, so always remember the purpose of your purchase: how long you need to be insured, the funds available and the ease with which your dependents can claim.
Get advice from a Financial Planner
For a nominal fee, seeking professional advice can be a good idea to plan your finances properly. Many first-timers make bad investment decisions by taking advice from relatives and friends. Each policy differs from each other, it is your responsibility to make the right decisions, which in turn will guarantee your financial security. If you don’t want to invest in professional assistance, there are many online websites for comparative research that you can use to your convenience.
Always keep these important steps in mind when you choose a life insurance policy in Nepal. Now, taking the right decisions gives you peace of mind and confidence in times of need.