How to select the best life insurance plan?
A good Life Insurance plan covers the risks to our life and also offers financial protection to our family members. For example, If you are an employee in any institude, you should buy a policy according to as per your annual earning. Expert says “ The choosen insurance policy should offer atleast 10x times your annual earning as a compensation. The lump sum of money will be given to the beneficiary in any case of undue or unfortunate death of that policy holder. This amount of money will help the beneficiary to keep maintain their life normal in the presence of their beloved one without any compromises. Let us discuss some of the major benefits of Life Insurance Plan;
Benefit of a Life Insurance Plan
- We can easily save money.
- delivers money at regular intervals of time
- It helps us to meet our life’s goals.
- It also provide protection to family’s future.
- Accidental death is protected.
- It is also free of income tax.
A best life insurance plan
To buy a best life insurance policy, first and the most important step is to be aware of our insurance requirements. Secondly we must know about all the features which are providing by repited insurance companies. Third and least important is that we only should choose insurance premium which should be affordable. By having these three steps in our mind, we may get high sum assured.
The Maturity proceeds are mostly paid at the end of the terms years or after the undue or unfortunate event of the polciyholder’s death. But one the greatest advantage of such policies is that we will get an exemption on the premium we pay and also of the maturity proceeds.
There are many more special life insurance polcies which help us to fullfill our family’s need. Children plans helps us to offer best education for our children in our absence. Our Child’s dreams of their higher eduation and their professional studies are also fullfilled with a children’s plan. We will also be able to take care of our children’s wedding expenses if we choose the best insurance plan.
Traditional Insurance Plans
- Term Plan
- Endowment Plan or Money Back Plan
Term Plan – we can buy term insurance plan with the lowest possible premiums we ever have. The term plan policy is considered to be the purest form of life insurance policy. It also covers the risk but it wont provide returns after the end of their policy terms. In the event like undue or unfortunate death of the insured, the sum assured is paid to the nominee or the beneficiary made by the policy holder. Term plan with return of premium is a new modified version of the term insurance plan in which if a policy holder survives after the term, the premium which is paid by the holder will be returned back to the policy holder by the insurance company.
Money back or endowment policy – Money back or endowment policy will be very much helpful in meeting your financial needs.as per the rules of the policy, we will be paid 25% of the money we assured in 12th year, 13th year and 14th years and rest money with annual bonuses is paid after the date of maturity discussed in the terms.
The difference between edowment policy plan and money back plan is a very small i.e, if we choose a plan an endowment, the maturity amount is to be paid to us after the term’s end and zero payment before’s the maturity date’s but in money back plan, it gives 25% of the money in 12th,13th,14th, and 15th year.
Selection of a Life Insurance Product
We should keep these points in order to choose the best life insurance policy:
- Insurance Premium
- Return Policy
- Customer Support
- Online policy
- Claim process
The best life insurance plan must covers all of your risks efficiently. We should be able to pay the premium without any difficulty in the future and their return policy should fullfills our and our family’s needs in a best possible way.