Throughout her life, Anita had witnessed her parents paying premiums on their life insurance policies with one insurer. When Anita started working last year, she was advised by her friends to invest in a life insurance policy as well. However, when she began looking up life insurance policies online, she was flooded with different types of life insurance policies that offered premiums at various rates, with a varying range of benefits. While some offered coverage in case of death by critical illnesses only, others promised riders which included death by accident. Others wanted to know her age, and understand her lifestyle choices before they would agree to give her a quote on the sort of policy she could purchase. She soon understood that while insurers would be able to offer several different types of life insurance policies, it was up to her to decide on the best life insurance policies according to her individual requirements.
Purchasing a life insurance policy is always a strenuous task. It is necessary to understand your own requirements, and purchase a policy that aligns with those requirements. Insurance companies often offer different types of life insurance, based on your prerequisites, which also have riders added onto them to cover other requirements that may arise. These add-ons can be included as coverage against specific critical illnesses, death by accident and for offering income benefits in case of disability.
Before you head into the market and select the best life insurance for your needs, read below to understand the different factors you must keep in mind while assessing the features of life insurance policies. Five things that you must essentially evaluate include:
1. Assess your need in terms of insurance
How many dependents do you have, and how much does your family depend on you for supplementing the family income? Will your family have other sources for meeting expenses in case of your premature death? Answering these questions will give you a better idea of the kind of insurance you will require. You can find insurance consultants offline who can help you estimate the cover you will require, while websites also offer assistance on evaluating features of life insurance and choosing the best life insurance for your requirements.
2. Compare different types of insurance policies
Most insurers offer either term insurance or savings-cum-protection insurance. While term insurance provides coverage for a limited period of time, referred to as a term, the latter is a more long-term plan. However, with Future Generali Flexi Online Term Plan , policyholders receive a rebate if they are non-smokers while their family gets a sum assured in case of their death during the policy period. This term insurance plan also provides the option to safeguard your family against loans and liabilities you may have had. The best life insurance for you will depend solely based on the requirements you foresee coming up.
3. Choose an affordable insurance plan:
Once you have assessed your own life insurance requirements, check how much the premiums will cost you. Depending on a variety of factors including your age, your reasons for availing an insurance plan and the period of time you want it for, your insurance premium is decided. A term plan will be cheaper, while a savings-cum-protection plan may require higher premiums over a longer period of time. Choosing an insurance policy is not just based on requirements, but also depending on how much one will be required to pay. With some policies in the market, the frequency of paying premiums can also be decided by the policyholder, with options ranging from monthly, half-yearly to yearly.
4. Assess the future of your insurance policy:
Take the help of an insurance consultant offline or through an online portal to understand what the insurance policy covers. Go through the fine print carefully, which includes the exclusions to an insurance policy. Exclusions list everything that is not covered by the insurance policy, and can be negotiated upon. It is critical to know the exclusions to the insurance policy before purchase, because finding out about them when the insurance becomes due can leave one’s family in quite a lurch.
5. Find out about the insurer’s claim settlement history before approaching them:
In several cases, families of policyholders have been left stranded by insurers who refused to pay up claim amounts by mentioning a variety of reasons. Make sure to check your chosen insurer’s claim settlement history through some thorough research on the internet to ensure that they are genuine.
Insurance plans prove their benefits in cases where the policyholder is no longer around to see them. This makes it all the more essential to evaluate the features of life insurance policies, and invest in the best life insurance plan, which will provide benefits which will ensure the family’s comfort.
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