Nowadays, everyone is familiar with the fact that the life insurance policy plays a major role in bettering his/her life in the easiest possible.
However, have you caught yourself in thinking how you can choose the ideal life insurance policy India which can actually cater to your life and financial goals? If the answer is ‘yes’, you should take a look what is discussed below to come out of darkness.
Buying a life insurance is heavyweight duty because not only is your life related to it but also your family will be affected by your decision. There are many types of life insurance plans that you might confuse because you are unaware of the maturity benefits. In order to take the crucial decisions for you, there are simple steps which you must follow to sort your life in terms of insurance policies.
Understand Your Needs
The life insurance plan must be helpful in assessing your needs and it is known that the term insurance can cover all the requirements that your family when you are not around. You need to review your current income, debts and liabilities, a number of people depending on you and the expenditure that took place.
- In the meantime, you should keep in mind that the insurance and investment is not the same thing.
- It is also important that you keep in mind the policy tenure in your mind so that you can make your financial budget efficiently. The tenure is necessary to remember until the time you are earning or paying the premium. Additionally, this phase can only post 65 years when your children are financially dependent on themselves.
Moreover, the expense for your children’s marriage or education can be sorted if you make use of the life insurance policy calculator beforehand.
Think about the Premiums and Plan
The life insurance policy investment should be made carefully because the policy benefits must take care of your requirements in life. Thereafter, you need to remember that a cheap life insurance policy or the one with huge benefits should not be your only focus.
- The fundamental of the maturity benefit is similar to every insurance policy; however, the terms plans can be a bit different.
- Unit-link policies have a certain amount of maturity benefits but they are expensive and might not suitable for everyone.
There are now various life insurance policy types and of course, the vaccination benefits, doctor’s opinion or wellness benefits must not be chosen only because of getting exempted from higher tax rates. Instead of investing in one high-end life insurance policy, it is better for you to invest in other tax schemes that can offer you enticing benefits.
Types of Life Insurance Policy
At the time of purchasing the policy, it is necessary for you to look at the life insurance policy information for going for the ideal category. If you are unmarried now, there is an option for an individual policy which can pretty much cater to your needs. The family floater can be a great option for all the married people because you can protect your children through it.
For your parents, there is an option for life insurance policy for parents which will make their lives after the retirement.
- The sum assured of the life insurance policy is generally fixed by the city where the insured resides. Apart from this, the policymakers check other aspects to determine the number of maturity benefits.
- When you reside in Tier-1 cities like Delhi, Mumbai, Chennai or Kolkata, it is good to go with high sum-assured where the amount is generally Rs. 10 lakh. For the life insurance policy, the tier-2 city is sufficient where the sum-assured is 5 lakh.
- The policyholders are eligible to get certain tax benefits that are dependent on the premiums. You can get the tax deduction as per the regulation of Section 80C and the premiums regulate the benefits.
You can further acquire knowledge of Section 10D which offers tax exemption on the amount of sum assured of the life insurance policy. Moreover, there is a bonus on the maturity benefits if the insured passes away naturally or accidentally. In addition to the context, you must keep in mind that that the whole life insurance policy might have different rules for people with the critical illness.
Do Your Homework on the Company
The Indian citizens need to keep in mind that there more than 25 life insurance companies offer life insurance policy. However, the market is full of fraudulent ones who promise high-end maturity benefits at a very low price. On top of that, there are different life insurance policy exclusions.
You can ask the company a set of questions which include,
- What is the importance of choosing a life insurance from your company?
- Is your company registered or licensed to deal with insurance?
- How much will life cover be sufficient for me?
- Can I get an example of the benefits?
- Are all the benefits non-guaranteed or guaranteed?
- Is there any exclusion in the plan?
- How long does it take to pay out the entire amount of premium? Can I pay the premiums in lump-sum?
- What are the consequences that I have to face if I fail to pay the premium on time?
- Do I need to undergo any medical examination?
- What is the claim process for the family floaters?
This is why you need to run a background check on the insurance company to get knowledge of claim settlement procedure or ratio before purchasing one life insurance policy in haste.
Calculate and Compare, Always
The easiest way of not getting duped by the agent of a life insurance policy is if you calculate the life cover beforehand. After assessing the sources of your income and needs in life, the financial advisor can advise you on whether the endowment plan, term plan, whole life insurance policy or unit-link plan can suffice your needs. And the advisor executes these important tasks by utilising the calculator.
After calculating the life cover, you should choose the compare option. By getting to know the life insurance policy quotes, you can find the suitable one which is good for your needs and budget.