How To Choose The Best Life Insurance Policy To Buy?
Published On Jul 20, 2021
Table of Contents
- Tips to Choose the Best Life Insurance Policy
- How to Choose the Best Insurance Company?
A life insurance policy is a contract between the insurance company and the policyholder. The insurer pays the policyholder a Sum Assured in case of death of the life assured or on the maturity of a policy on the promise of paying premiums as per the contract. The policyholder also has the liberty to choose from many riders. Riders are the optional paid features available in life insurance.
Tips to Choose the Best Life Insurance Policy
To come up with the best life insurance plan, it is crucial to understand your financial needs and also, the main objective of buying a life insurance policy.
1. Assess Your Financial Needs - Long-term And Short-term Goals.
Depending on the number of financial dependents you have, you need to figure out the life insurance coverage. If you are buying a life insurance plan only to provide financial security to your family, it is advisable to opt for a term insurance plan for a high sum assured at a low cost.
2. To Buy The Right Type Of Insurance, You Must Compare Life Insurance Policies Online.
Compare insurance plans in detail, check plan's inclusions and exclusions, and premiums charged by various insurance companies. Opt for a life insurance rider, only if you need it. Compare plans, some insurance companies do offer riders as an in-built feature of a plan. You can save money on that by comparing life insurance policies online..Seek experts’ advice if you are confused, before you buy.
3. Choose How You Will Pay The Premium
Regular(annually, monthly, quarterly), Limited Payment Term, or Single Payment. It is suggested to pay a premium annually.
4. Choose the Right Payout Method
Lump sum, equal installment over a period, or a combination of both. Depending on your financial needs at various life stages and also, on the financial knowledge of the nominee, you can select the payout option as suitable.
How to Choose the Best Insurance Company?
The insurance company will play a huge role while buying Life Insurance. To select the best life insurance company one should go through their claim settlement ratio. Your family must not face any problem when it comes to life insurance claims. Factors to check:
- Claim settlement ratio
- The number of grievances solved in a year
- Post sales service will determine the credibility of the Insurance Company
- Online Reviews
- Previous Customer’s Testimonial
The above factors will help in choosing the best life insurance policy. Securing your loved ones financially with a life insurance policy is the best way to avoid all the hardships they will go through in your absence.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.