Confused about which life insurance plan to choose? Here’s a handy reckoner to help you choose the right plan.
Choosing a life insurance plan
While it can be a bit daunting initially, since one is on unfamiliar ground, it is actually just a matter of getting in touch with the right advisor who will demystify the seemingly complex world of insurance and educate you about the plans that would work best for you. It is imperative that you understand the terms of insurance, weigh the options carefully and make an informed decision about the coverage that is right for you and your family. Basically, life insurance and living benefits insurance can be of two types: insurance that only protect your dependents, and insurance that protects your dependents and provides a savings and investment avenue as well.
Life insurance doesn't have to be complicated, and there are lots of ways we can help you make the right choice.
Before you begin the process, it is vital to get in a trusted advisor and discuss your needs and understand which options work best for you. It is important to establish what your need is and have a goal in mind. Once that is done, evaluate which life insurance policies suit those needs the best. Compare between policies to zoom in on the one best suited to you. Another important thing is to evaluate the rider options. Riders are attachments to your policy which entitle you to added benefits.
Equally important is to evaluate the company you are buying the policy from– you need to check for customer service feedback, claims settlement ratio, financial stability, distribution reach, payment facility provided etc. Once you understand the implications and repercussion of what you are buying, you will be able to choose the right policy. Once you receive the policy documents, go through the documents to review all what you have opted for. Also, re-visit your plan from time to time as needs and goals change overtime.
What you need to understand:
What types of insurance are there?
Understand what types of life insurance plans are available as it is important that you find out all you can about the kinds of cover available and understand the terminology. For instance, term life insurance policies offer death benefit only, whereas an endowment offers death benefit and also provides an avenue for safe and systematic savings.
What are the key drivers that make