Life insurance is a financial instrument that is designed to protect you and your family against life’s uncertainties. The sum assured offered by a life insurance policy in case of the policyholder’s demise can be used to fulfil various financial requirements.
When you are looking to buy life insurance for your family, you may want to buy the best policy that gives your loved ones maximum protection. However, there are a number of policies as well as insurance providers, which makes it difficult to choose the right one. Especially so, if you are buying it for the first time.
It is necessary to have life insurance in India to give you a financial cushion in case of an unfortunate circumstance. However, even though the policy is necessary, not many people know what is life insurance and how it helps.
Here are some of the things you need to consider if you want to add life insurance to your financial portfolio.
- Evaluate Your Distinctive Needs
Before you start looking for the best life insurance in India suitable for your family and their needs, you need to step back and assess these requirements properly. For starters, you need to determine the financial contribution you make towards your family and their functioning.
Is there any other source of income for your family members that can help them meet their expenses? How many dependents do you have? Finding answers to such critical questions will allow you to identify the exact coverage you are going to need and help you buy the right cover. So, you can be assured your insurance will provide adequate financial protection to your family if anything happens to you.
- Compare Insurance Policies
Life insurance is a long-term financial product that works as a savings-cum-protection plan. So when you buy an insurance policy, make sure you are well aware of the features as well as the benefits it covers.
A first-time buyer can look into term insurance policies that are cheap and offer significant cover at a lower premium. They provide financial security to your family against unforeseen events, such as an untimely death. However, the insurance companies are not liable to pay anything if the policyholder outlives the policy tenure.
If you are looking for a maturity benefit, then consider investing in savings-cum-protection life insurance policy that will give you the sum assured as well as the bonus upon maturity.That is why it is important to compare policies online before making an investment decision. It helps you in making an informed choice.
- Invest In A Cover You Can Afford For Long Term
Once you have assessed the needs and compared different policies, you need to determine how much premium you can afford to pay for the entire duration. People buying life insurance for the first time are advised to go for term insurance plans as the premium is low and more affordable. You can always opt for savings-cum-protection plan later in life when you are able to afford higher premiums.
- Choose Rider Options Carefully
Term insurance policies come with add-ons and riders that should be considered when you are buying a policy. Some popular add-ons that you must consider adding to your policy include critical illness cover, accident or death due to accident, waiver of premium on disability, etc.
All the riders come with their own set of benefits suitable to the varied needs of the investor. Be sure to evaluate your distinctive needs first and then add these riders to your policy. With each additional rider, your premium will bump up. Hence, it is crucial to choose them carefully.
- Understand The Policy Terms and Conditions Properly
Buying a life insurance cover is not as complex as it seems. All you need to do is perform thorough due diligence before making the investment. Take time to read the fine print that includes pertinent details, like the exclusions.
Understanding these things will help you make an informed decision and prevent your family from any troubles when they want to make the claim.
- Educate Yourself About Claim Settlement History Of The Insurance Provider
Claim settlement ratio is the ratio that represents the number of times an insurance provider has settled the claim with regards to claims raised. A reliable insurer will always have that number in the 90s range. You can also refer to trusted governmental sources such as the website of the Insurance Regulatory and Development Authority of India (IRDAI) to get the latest information.
A family that cares is one of the most precious gifts of life. Therefore, you must do everything you can to take care of your loved ones as well as their needs. To make sure they are protected from life’s uncertainties, life insurance in India is the perfect option. It acts as the necessary tool to safeguard your family’s financial interests when you are not around anymore. The sum assured given to the policy nominee after the policyholder’s death can help them sail through the financial void that you leave behind.
Wondering which life insurance cover to buy? Get online and check out trustworthy insurance providers, such as Max Life Insurance, to browse through various products. You can also use their online savings calculator to get accurate coverage and premium payable towards the chosen plan.