Getting life insurance is one of the top things that you should keep in your to-do-list. Having life insurance will reduce the financial stress from your mind and gives you a sense of security for your loved ones after you are gone. However, there are certain things you should look for while buying a good life insurance plan in India. The life insurance plans and policies often come with set packages that you should customise as per your requirements. So, here we are providing you with some of the things you should consider when purchasing a life insurance policy.
Since there are lots of good insurance companies in India, the number of insurance policies and plans is also quite high. We all know that life insurance policies give your family the financial stability after your demise; however, there are certain insurance plans that provide you with the option to get some or all the premiums you have paid throughout the policy if you do not require the coverage anymore. Many policies provide you with the option to get cash out of your life insurance plan in the case of getting a life-threatening disease such as cancer.
The ultimate goal of buying a life insurance policy is to offer a financial security to your loved ones during the days you aren’t around. Therefore, it is important to first find out the ability of your life insurer to settle your claims. Claim settlement ratio is one of the most important things you can’t afford to miss out on. Higher the claim settlement ratio, higher are the chances of your life insurance claims getting settles easier.
If you have a term life insurance policy, you must check if your policy gives you the option to “Covert” your term feature, which allows you to convert your term insurance policy into a permanent insurance plan. For an instance, if you have a term insurance plan for tenure of 25 years and after completion of 24 years, you decide to continue with the coverage, the “Covert” feature will allow you to do that with no trouble to prove that you are still healthy. This way, you will save yourself from the hassles of buying a new life insurance policy, which would otherwise be difficultto get if you have some serious medical conditions.
You may not know but your life insurance plan can serve as collateral for borrowing funds. Yes, therefore find out from your life insurance company whether you can opt for a loan facility against your life insurance policy. Only money back policies and endowment plans can be used to grant loans.
Companies often have a wide range of price out for the health conditions based on your family’s medical history. You must evaluate each policy and its rates for the medical conditions you have. You may also talk to an independent insurance agent that might help you get the best rates considering your disease. If you do not keep this in mind while buying a life insurance plan, you might end up paying more or not get the substantial coverage.
Remember, the life insurance policy is a tool by which you can have three types of benefits viz. financial stability in the case of an uncertain death, tax benefits and long-term savings. Hence, you must take time to evaluate all your options and go for a suitable insurance policy as per your needs.
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