For most individuals, our families remain our top priorities due to the changing and uncertain times. But have you secured the right type of backup for your dependents? With a wide range of insurance plans, it can be tough to understand what type of coverage you require.
Here are 6 tips to help you choose the right insurance policy.
- Compare online
With today’s technological advances, you can purchase almost everything online. Similarly, getting a life insurance policy on the internet is just that easy. So, it is recommended to compare various insurance providers and the plans offered by them. This can be done with life insurance calculators, which enable you to compare policies side-by-side based on various factors like premiums, riders, coverage, etc. Therefore, you pick the right plan that fits your budget and get the most from your money.
- Research about the insurer
On comparing various insurance policies, the next step is to research about the insurance company. Numerous aspects shall help you find a reputable and trustworthy insurer. Some vital parameters are Claim Settlement Ratio (CSR), Incurred Claim Ratio (ICR), solvency ratio, etc. Another method is to know more about the services offered by an insurance provider, look at customer reviews and ratings. Hence, doing your research before finalising an insurer is important and shouldn’t be skipped even for popular insurance companies.
- Know your insurance needs
Many a time policyholders select the coverage amount and the rider benefits without giving it much thought. But at the time of claim, you may find the sum assured to be insufficient and not enough to cover the expenses of your family. Thus, you must first understand your insurance requirements and the goals you want to achieve by purchasing a life policy. On knowing this, you can pick a suitable policy that offers the right coverage and financially secures your dependents. This will ensure your loved ones have enough backup and you can rest assured.
- Understand the exclusions
Every insurance plan has a set of terms and conditions mentioned that describe the coverage. Under this, you shall find exclusions, which are aspects, or risks that are not covered by the insurance provider. While buying life insurance, many individuals may end up considering the features and benefits, the premium price, and other such factors. Exclusions of a policy are just as crucial, and you should consider them at the time of purchase. This shall save you last-minute troubles of finding out that your claim falls under the exclusions of the policy.
- Make use of the riders
You can maximise the coverage available under your life insurance policy by adding rider benefits. These riders can be bought at a nominal rate and offer additional perks over and above the features of your policy. The add-on covers offer security from certain risks or unfortunate incidents such as accidental death, disability, loss of income, etc. Therefore, it is advised to make use of such rider benefits and purchase the ones that suit your requirements. In case of an untoward situation that is covered under the rider, you can avail a lump sum benefit or a regular payout.
- Consider various types of life insurance
There are an endless number of options available when it comes to life insurance plans. Some offer you a life cover while other policies also have a savings or investment component. Based on the policyholders and the needs of their dependents, a personalised insurance plan can be bought. If your plan is to simply safeguard your loved ones with a risk cover, then a term plan is for you. However, if you want to save up and create wealth for the future, then you can explore other life plans. To get you started, some popular policies are term insurance, money-back plan, endowment insurance, ULIPs, whole life insurance, etc.
You must have learnt about life insurance tips to get the best plan with the above-mentioned pointers. So, opt for an insurance policy today and secure the future of your dependents today! Ensure to purchase a life plan online to get an affordable premium quote.