Choosing the right life insurance policy

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In the present days, life insurance is very important to anybody.  Insurance can be useful as investment, tax saving, or to face any sudden financial issues.  Policy holders consider several aspects before buying a policy.  Let us go through the things that need to be considered before taking a policy.

Choose the right insurance policy

There are several types of insurance policies available in the market.  Choose the right one for your needs.  If the aim is only financial security, then term insurance is good.  Money back, endowment, annuity, and ULIPS for insurance and investment needs combined.  Also choose the policy per your financial requirements among these.  If you are not able to select one, consult financial or insurance experts for advice.

Term coverage

There is provision for choosing the coverage period per our choice in insurance unlike PPF or EPF.  It can start from 5, 10 up to 30 or 35 years.  It is better to take the policy that covers until retirement generally.  Since you may have the family settled by that time, you may not need insurance anymore.  Annuity is a good option after that.

Insured amount

Don’t fall for the advices given by your friends or relatives.  Calculate the amount that matches your lifestyle and income through insurance calculator.  At the same time, if you have properties that can aid during any type of family urgency, you may not need insurance.  Choose the insurance amount taking into account all of these.  Insurance may not be needed if you have no dependents.

Online or offline

Online is rampant for quite some time now.  Insurance policies are also available online now.  Observe differences between the offline and online modes, claim procedure and details about the policy in the website.  Better to take offline policy if you find online confusing.  This also will have agent who can help at times of claim.  On the other hand, premium for online is less than that of offline.  Choose the mode you feel comfortable based upon the above.

Choice of insurance company:

After considering all aspect, you have to be careful in choosing the right insurance company.  Check whether the company is registered with IRDA.  Select the company that has high claim settlement ratio and that deals the customers smoothly.  Choose the company that provides coverage for acute illness and permanent disability by paying the full insured amount without any additional riders and that has cheaper premium.  It is better to check for feedback online about claims and what people think about the company.

·         Know the procedure followed in case something happens to the policy holder.

·         Enquire the surrender value in case you don’t like the policy and want to surrender it.

·         Know about lock-in period and loan provision.

·         It is always advisable to fill the policy document personally.

Insurance is most needed for the chief breadwinner of the family.  always know the complete details of the policy that stays with you through the life.  If you realize out that the policy is useless, premiums paid may get wasted.  So, always enquire about all the above before taking a policy for health.