Points You Should Remember While Choosing a Life Insurance Plan

1. Points You Should Remember While Choosing a Life Insurance Plan

2. Purchasing a life insurance plan is in the best interest of a family as it provides the much-needed financial cushion when emergency strikes unexpectedly. The Best life insurance plans are term plans that offer financial coverage to the beneficiary of the policyholder for a specified time period, thus safeguarding a family’s future even in the absence of the individual. Such plans help a family deal with out-of-pocket expenses arising in situations such as critical illness, accident or premature death of a person. However, before opting for a term plan, it is best to keep certain factors in mind, as mentioned below, so that an individual makes the right selection that matches his or her specific needs.

3. Know the major benefits The Cheapest term plancan curtail the burden of financial expenditure arising during any mishappening. Moreover, life insurance plans offer tax exemption as per Section 80C of Income Tax Act 1961. Benefits like these are compelling reasons to buy life insurance plans and this is an important fact to note. • Compare before buying Just like systematic financial planning for buying life insurance, it is essential to compare various policies by insurance companies to find the best of all the Best life insurance plans.The policies vary in terms of the premium costs, scope of policy cover, customization, extent and number of deductibles and the claim settlement ratio to assess the ease and speed of claim settlement offered by a particular brand.

4. Choose regular over one-time premium Often, people prefer paying a single premium instead of regular premiums. In fact, one-time premium may not actually save significant costs. Rather, regular premiums, even if they gradually increase, are the best thing for policy holders and help them manage money more efficiently. • Specify your tenure requirements The tenure of the term plan is an important factor. The insurance policy must provide coverage till the age an individual wants to work, which is 65 years nowadays. He or she should go for a policy tenure which would ideally be the difference between his expected retirement age and his current age. In fact, terms plans should be bought at a young age as the premiums are relatively lower.