5 things to look in while buying Life Insurance plan

When it comes to fulfilling the needs of your loved ones who are financially dependent on you. A Life Insurance cover comes in handy. Life Insurance work as a pillar of your personal finance. In India, every household should consider about it.
Life insurance is another such thing, and the right time to learn about it- anytime between when you start earning money to when you’re forced to stop.

5 things to look in while buying Life Insurance plan:

-> Life Insurance plan you need:

A policy is a contract between a life insurance company and someone who has a financial interest in the life and livelihood of someone else. There are different kinds of life insurance plans, which can vary in terms of features, structure, and work. While choosing an insurance plan, it is important to be clear about why you want to purchase it- what your end goal is- and what you expect from it.

-> Premium payment details:

Before purchasing a life insurance policy, first be sure that you can handle the premium payments. There are many online tools that can help give you an idea of how much money you should pay for the policy you need. The next step is deciding how often you can afford to pay a premium to keep your Insurance Plan active. You can either pay the entire premium amount in a lump sum or you can pay it at regular intervals – monthly, quarterly or annually.

-> Policy Tenure:

The ideal tenure of a Life Insurance Policy depends on what is your current age and When will you retire. ‘Retirement Age minus your Current Age’ is used to calculate your policy tenure. This means that if you are currently 32 years old and wish to retire at the age of 60, your policy tenure will be 28 years. Some other policies cover your whole life (up to 100 years of age).

-> Read and understand the insurance policy carefully:

Once you’ve made the decision to help and protect your family with life insurance, it’s important to understand your insurance coverage. Most people hate the thought of reading a life insurance policy. But if you can find the time, it’s probably a good idea to read through your policy.

-> Coverage or claim:

Add-ons are additional benefits along with the base cover, such as critical illness rider, accidental death benefit rider, waiver of premium rider, disability rider etc. The chief responsibility of your insurance company is to pay claim amounts and deliver maturity benefits.Remember, however, that the insurer might not be deliberately rejecting claims; there’s also the possibility of adverse selection, so try and find out why they were rejected.