What are the ways to choose a Life Insurance Policy?
May 30, 2020
Term Life insurance is one of the most important purchases in life. As a result, it is essential to select one after thorough research and planning. Check out this post to know five easy ways that can help you make the right selection.
Purchasing term life insurance is one of the best ways to create a financial safety net for your loved ones in your absence. With the wide range of policies now available, choosing the right life insurance policy is a critical process.
To eliminate the hassles, we have listed 5 simple points with the help of which you can easily select a life insurance policy.
- Calculate HLV
A life insurance policy is taken to make sure that the financial needs of your family are adequately taken care of in case of your unfortunate demise. This can only be done if your policy has adequate insurance cover. You can know how much cover you need by calculating your HLV or Human Life Value.
HLV is the sum of your income plus liabilities such as loans. The HLV amount can work as the foundation in deciding the sum assured you should take. The life insurance policy you select should at least offer the HLV amount as policy coverage.
- Understand Product Features
The term life insurance plan should suit your needs. It should give a longer cover, multiple add-on benefits to choose from and different payment options such as limited pay option which allows to pay off your premiums in a short time and enjoy the benefits of a longer cover. Understanding life insurance features is the key to selecting a plan best suited for you.
- Browse Additional Riders
One of the best ways to enhance your life insurance cover is to purchase riders or add-ons. The riders provide you with additional benefits that are over and above the benefits of your life insurance policy. You can look at add-ons such as terminal illness cover, critical illness cover, accidental death benefit or waiver of premium due to disability.
- Pick an Insurance Provider
The next step is to pick an insurance provider for your life insurance policy. Always prefer a reputed insurance provider, even if it means spending a little more as compared to a company that does not have a positive reputation.
You should select a brand you can trust by checking out their claim settlement ratio, assets under management, claim settlement process, year of establishment and solvency ratio of the brand. You can also compare the premiums of top insurance providers, so that you select one that is reputed, affordable and still offers the best features and benefits.
- Purchase Insurance Online
As compared to purchasing life insurance offline from the insurance company or an agent, online insurance is known to be cheaper and faster. The process is short and completely online. You also get on-call assistance during the purchase to clarify any doubts.
Many of the insurance providers now also have online insurance calculators with the help of which you can get an instant quote for the policy you would like to purchase. This will help you make an informed decision.
Secure Your Family with Life Insurance
Taking care of the financial needs of the family is one of your biggest responsibilities. Purchasing term life insurance is a smart way to ensure that your family lives life that you have always imagined for them even in your absence.
Now that you know how to choose life insurance, use the tips to select a policy that can help you secure your family and provide you with complete peace of mind.
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Non-ICICI Bank customers can calculate their quote here .
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