It can be quite a challenging task to purchase a life insurance policy for yourself. First and foremost, you should clarify some fundamental concepts of life insurance. Needless to say, varying life insurance policies offer different benefits. In order to cater to diverse requirements of customers, insurance companies provide add-ons for basic life insurance covers. These may be referred to as riders in many cases. They take care of ailments such as death resulting from accidents, heart attacks and disability. The next step is the more critical part of the decision, as to which life insurance product provides the best solution to your requirement. Term insurance plans are basically protection plans which are particularly designed to protect your family against unforeseen circumstances. The following are the 5 things you must take into consideration:
1. Analyze your requirements for Insurance
Keep in mind factors like the amount that you contribute to the overall income of the family, the number of people who are financially dependent on your earnings, something that the family has to fall back on in case of a premature death and so on. Once you get the answers you need, you can choose the coverage amount for the life protection plan that you will be opting for. Get hold of the right agent who offers all necessary information related to life insurance related schemes and assistance with regard to insurance requirement evaluation.
2. Comparing Policies
There are two kinds of life insurance plans, namely term insurance and savings-cum-protection insurance. The former offers protection against suddenly burdensome financial circumstances. These insurance plans come with lower premiums and higher coverage amounts. There is also a maturity benefit complete with savings-cum-protection insurance which equates to the sum assured along with bonus additions. Term insurance covers financial protection of dependents in case of unforeseen situations.
3. Always go for affordable Insurance Coverage
After analyzing your life insurance requirements, you should work out the costs in terms of the premiums to be paid annually. Prior to purchasing life insurance plans, you should make sure that you can afford the expected premiums for the entire tenor of the policy. In case there is a bigger requirement for insurance, you should steer clear of savings and protection plans. You can finally select a savings and protection plan in case you can afford to pay high premiums on a regular basis.
4. Policy evaluation from a future Perspective
Always get required guidance from the insurance agent for understanding your policy details better. You can always take a look at the exclusions prior to purchasing the policy.
5. Scrutinize claim settlement History
Insurance policies are bought so that in case of any future requirements, the company will be paying up the benefits which have been promised to customers. Once overall insurability has been ascertained by insurance company, you should always check the overall claims payment ratio of the organization. Claim based data is available at the IRDAI official website too. Remember that there may be solid reasons behind insurance companies rejecting claims. Additionally, insurance providers will always look out for claims which are fraudulent.
