India, July 30 — In this world full of uncertainties, taking care of your loved ones is a top priority. This involves ensuring their financial stability and emotional well-being, among other factors. Life insurance can be an effective investment to help achieve this goal, as it protects your family’s financial future in your absence. However, selecting the right life insurance policy can be challenging, given the number of unique plans available in the market.
Read on to learn key tips for choosing the right plan, as it involves considering several factors.
How to Choose the Best Life Insurance Policies in India?
Here are 5 key factors to consider when choosing the best policy and coverage for yourself and your family.
1.
Coverage Requirement
One crucial factor to consider when selecting a life insurance policy is the sum assured. Sum assuredmeaning the guaranteed amount that the insurance company agrees to pay under a life policy. You must carefully calculate this amount, as it will financially protect your family in your absence. Make sure it is sufficient to cover their daily expenses, pay off debts and more. You can also use a term plan premium calculator to estimate your coverage and premiums.
2.
Choose the Right Type of Policy
After knowing your life insurance requirements, you must understand the types of life insurance to select. If you have dependents relying on your income and debts, term life insurance can be your ideal choice. However, if you have long-term financial goals or are planning for retirement, you can select a whole life insurance, retirement plan or endowment insurance plan.
3.
Compare the Premium Rates
Another crucial factor to remember when buying the best insurance policy in India is to compare the premium rates of various insurance plans with the same coverage and benefits among different insurers. Select the one that best fits your financial capacity and expectations.
4.
Check the Policy Features
After determining the insurance requirements, you must check the policy features. Examine whether it offers features to add riders, such as accidental death, critical illness, permanent disability coverage, and more. In addition, you must check whether you can customise the policy according to your insurance requirements. Many insurers provide policies with immense flexibility to adjust sum assured (increase or decrease), policy payments, tenure, and more.
5.
Financial Strength and Reputation of the Insurer:
Before purchasing a plan, it is also critical to research the financial strength and reputation of the insurance company. You can check out reviews, ratings, and claim settlement ratios to ensure reliability. It is worth noting that surprises related to the insurance claim process are not desirable.
How to Buy a Life Insurance Plan Online in India?
You can follow this simple guide to buy the right life insurance policy in India:
Step 1: Visit the official website of your preferred insurance company and create an account by entering your details.
Step 2: Choose the life insurance type according to your requirement and provide your information, such as name, contact information, annual income, date of birth, health issue, medical history, etc., and click the ‘Check Price’ option.
Step 3: Enter the insurance amount, premium payment term and other required details, as per your preference, and click the ‘Proceed’ button.
Step 4: Select the payment method and click the ‘Pay’ option to make payment via your debit card, credit card or UPI.
Step 5: You will receive the life insurance policy in your registered email address after successful payment.
However, please note that this is a generic procedure for buying a life insurance policy in India and may differ from insurer to insurer.
Final Words
Purchasing the right life insurance policy is crucial in protecting your family’s future. However, make sure you evaluate your family’s specific requirements, compare premium rates, understand policy features, and check out the insurer’s financial stability before buying a life policy.