Tips To Choose The Best Life Insurance Plans Life is full of if’s and but’s. None of us know what might happen even the next minute. If your child, life partner or your parent(s) depend on your income then you need to have Life Insurance plan. Term insurance is the simplest and most fundamental insurance product. Term insurance plans are designed to ensure that in the event of the policyholder’s death, the family gets the sum assured (the cover amount). Term plan provides risk coverage for a certain period of time (policy term/duration). If the insured dies during the time period specified in the policy and the policy are active – or in force – then a death benefit will be paid. It is the cheapest form of Life insurance in terms of premium.
When it comes to selecting the best life insurance plan, there is lot of planning and risk-assessment involved. Your financial planner or insurance agent will want to know: 1. Your salary and other sources of income along with liabilities like loans so as to calculate your human life value. This is the key input for taking life cover. 2. Whether you are willing to take risk 3. What are your important life goals in terms of planning for child’s education, marriage or your own retirement 4. Your investment timeframe viz. 10 years/20 years/30 years The financial planner will select the best life insurance policy that meet’s your needs based on these inputs. The best insurance plan Having said that, there are some unique and innovative features across insurers/insurance plans that individuals must seek out while finalizing their insurance choices. Some of these features include: