The Best Life Insurance Policy For You Right Now

1. The Best Life Insurance Policy For You Right Now We at Policies365 understand insurance better than anyone else. As experts on this subject, we know that the simple question of ‘which life insurance policy is best suited for me’ comes up in almost every individual’s head. The answer to this question depends on a bunch of external factors. In this article, we aim to highlight some of the major pointers that will help you decide what is best for you and the ones you love and care for. Different options in life insurance policy: 1. Affordability of Premium Finding the right premium involves understanding the affordability of premiums. The premium is determined by factors such as age, lifestyle, gender, nature of work, sum assured etc. Ideally, choose a plan that is affordable for you today, because the older you get, the premiums will increase as an insurance companies class you as ‘less insurable’. You can compare the best life insurance policies here. 2. Sum Assured This works on a pretty simple logic – the higher the sum assured, the higher your life insurance premium is going to be. Also, keep in mind that over-insurance is as bad as under-insurance! You can calculate the sum assured by keeping some important factors in mind: individual and family need the value of income

2. replacement and analysis of the need. Before purchasing the life insurance policy, look at other dependencies like a total number of members in the family, other sources of income, overall health, and age of family members (if your kids are young, securing their future would involve education expenses and even marriage costs). 3. Policy Tenure Figuring out the right tenure for your life insurance policy is as crucial as locking in on the sum assured. A simple formula to calculate your ideal life insurance policy tenure is to assume your retirement age, and subtract your current age from it (for example, say your assumed retirement age is 65 and your current age is 33, your ideal policy tenure will be 65-33 = 32 years). As a practice, most people choose life insurance policy tenures up till their age of retirement. You can compare the different policies and tenures right here: Compare Life Insurance Online 4. Claim Settlement Ratio As is the case with almost any insurance policy that you may buy, the claim settlement ratio is of utmost importance even for Life Insurance policies. Under IRDA regulations, every insurance company has to declare its claims settlement ratio, and this information is available in the public domain as well as the IRDA’s annual report. Always go for an insurer with a high claim settlement ratio – in the worst case scenario, you don’t want to be left running from pillar to post to receive your claim amount. 5. Add-on Covers Value-added covers such as critical illness, accidental death benefit, the return of premium, double death benefit and others are crucial, as they give you a lump sum amount in the event of a claim. We at Policies365 believe that it is advisable to go for a critical illness cover if there has been a history of life- threatening diseases in your family. While an insurance cannot solve your problems, it can cushion your fall during hard times. 6. Solvency Ratio and Credibility of the Insurer What is Solvency Ratio, you ask? Well, solvency ratio tells you the size of the insurer’s total assets in comparison to their liabilities. Hence, a higher solvency ratio means that the liabilities are backed by assets which are more than the mandatory limit of 1.50 as set by the IRDA. A higher number indicates a healthier insurer. Additionally, choose an insurer based on credibility, because your life insurance policy will run for the next few decades, and you would want a company that’s around for that long too! Why don’t you check out some of the best Life Insurance policies before making your decision? Here, let us help: Calculate your premium now. Continue reading