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5 tips to choose the best life insurance policy to safeguard your family

14th May 2018
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An individual takes a life insurance policy in order to secure the future of the family. If you are a sole bread earner of the family then you must buy a life insurance policy.

These days, life is very uncertain and you cannot actually predict what is going to happen next. That is why it is important that you make some arrangements in advance to safeguard the family in your absence. Insurance company assures to provide financial assistance to your loved ones when you are not around.

Since life insurance policy is a major investment that one makes for the family, it is important that you make this decision wisely. In order to select the best policy, one should do a lot of research to find the best-suited life insurance policies available in the Indian market. 

Once you have got some of the best policies, do compare the features and benefits of various insurance policies. You can take the help of the online tools to compare various policies. These tools help you to select the best policy according to your affordability and requirement. 

Do check all the important aspects including sum assured, premium amount to be paid, riders, tax benefits, the tenure of the policy and more before coming to any decision. Select that policy which gives you maximum benefits for the affordable premiums.

Check out some of the tips to select the best life insurance policy to safeguard your family:

• Check the claim settlement ratio:

Claim settlement ratio tells you how many claims a particular company has settled against the claims raised by the people. This ratio gives you a clear picture of how your claim will be handled by that particular insurance company in the future. If a company has higher claim settlement ratio that means there are higher chances that your claim will be settled in the future. 

While on the other hand, if this ratio is low then you should think again as the company might not be able to settle your claim easily. LIC has the highest claim settlement ratio i.e. 98.31 % in the market. HDFC Std and Max Life also have good settlement ratio. You should refer to the plans of those insurance companies which have good settlement ratio.

• Use online tools for comparison:

There are a lot of tools are available online that help in comparing various life insurance policies from different insurance companies available in the market. These tools provide various important information including the tenure of the policy, riders, premium amount to be paid, modes of the premium payment, sum assured and more in order to help you to compare various life insurance policies. These tools suggest you some best plans as per your need and affordability so that you can select the appropriate one. The online premium calculator is of great help as it helps in calculating the amount of the premium to be paid in just a few seconds and also comparing various plans that you want to compare.

• Take the help of the agents:

You can also take the help of the agents in order to select the best life insurance policy as per your requirement and affordability. Agents have a lot of information about the various life insurance policies and insurance companies. So they are a great source to suggest you the best as per your needs. But make sure that you do not rely on them completely as sometimes agents try to mis-sell to the customers in order to earn a higher commission.

• Check the online presence:

Before buying any plan from any of the insurance companies available in the market, you should check the online presence of the company and policy. Check the reviews of the people about the plan and insurance company. These reviews help you a lot in taking a correct decision. Though every insurance policy works differently for different people in terms of the premiums and sum assured but the online reviews can help a lot in assessing the overall performance of the company. So you must refer to the online presence of the policy and company before buying any plan from any insurance company in the market.

• Acknowledge your family about the plan:

Your family must know that you have taken a life insurance policy. It is not an easy matter to discuss but it is important that you tell your family that you have taken a life insurance policy so that they can make a claim in the need of the hour. You should disclose all the important details to your family including nominated beneficiaries, policy account details, debts and liabilities, how you want the claim amount to be spent and more. So if you have taken a policy then make sure that your family knows about it.

A Final Word:

If you are the only breadwinner of the family then must buy a life insurance policy to safeguard your family. Once you have taken a policy, it is important that you tell the same to your family so that your family can claim the amount from the insurance company on time.

Since life insurance is a major investment that one makes to reduce the financial burden of the family in his or absence so it is important that one makes this decision wisely after doing a lot of research and considering various important factors including premium amount to be paid, modes of the premium payment, sum assured, the tenure of the policy, additional benefits and more.

A lot of people buy a policy because it is cheap. But this should not be the criterion to buy the policy. You should buy a policy that offers maximum benefits for affordable premiums.

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