If there’s one thing that we’re sure of, it is the uncertainty of life. No matter how many times we’ve come face to face with anxiety about our financial status, the only effective measure introduced to deal with risk and provide financial security is insurance. There are various types of life insurance plans available to financially stabilize your loved ones in the case of your untimely demise. Life insurance policies help remunerate the family at the time of the insured’s passing.
Best Practices Before Investing In Life Insurance
The consideration of life insurance starts when financial planning takes place. Along with financial security, acquiring life insurance also encourages investment behaviour and effectively manages risk. But before you jump into applying for life insurance, there are a few rules to adhere to and things to consider.
How it works
For a lifelong investment such as life insurance, it is crucial to be aware of how the premium is to be paid, how the returns are being received, how to choose a beneficiary, and what each policy covers. Lump-sum payouts, instalment-based payments and the beneficiary’s details are some key factors to keep in mind before finalizing a policy.
Term life vs whole life
It is important to know the specifications of term life insurance plans and whole life insurance plans. Where term plans are more affordable and comprehensible, they also have a fixed expiry date. It is advisable to consider an experience policy from a provider that shows a high payment settlement ratio over the years. It is also essential to compare the different types of policies extensively.
Consulting an expert
In any venture, it is advisable to consult with an expert in the field with regards to your situation and decisions. An insurance expert can positively bring about advantages and disadvantages to the various policies in the market. An insurance agent can help assess your current life situation and help pick an appropriate insurance plan that caters to you and your family’s needs.
Selecting plan tenure
Deciding on the plan’s maturity age and the tenure involved must be related to both your current age and retirement age. If you apply for insurance at the age of 20, a term plan of 40 years is suitable. Additional facts and data regarding term plan periods can be made available by the provider as well.
Sincerity and impartiality
Do not be eager to apply for a life insurance plan at first glance. Make sure to analyze at least three policies to find an accurate plan for your position. You must be prepared to be honest about health-related questions and transparent about your financial circumstances in order to attain the most fitting policy. The insurer can deny your application if they are informed of any undisclosed information.
Top 4 Insurance Policies For You
Now, when it comes down to deciding on a life insurance policy to your liking, there are a few different policies to look into. Different companies have various types of speciality plans and advantages. The following are the top insurance companies in India as of 2021.
1. Canara HSBC Oriental Bank of Commerce iSelect Star Term Plan
The iSelect Star Term Plan is one of the most profitable plans by Canara HSBC OBC. This plan covers the insured’s spouse in the same policy. It also offers multiple premium payment methods that consist of short tenures ranging from 5-10 years and an additional option to profit from premium return benefits.
The iSelect Star Term Plan provides affordable premium rates and various coverage options for the insured. Child Support Benefit, Accidental Total Benefit and Accidental Total Benefit are some additional inbuilt coverage options. The plan also provides discounts on premium amounts and various methods for premium payment. Following the nation’s tax laws, there are policy-related tax benefits as well.
With a multitude of beneficial characteristics, the iSelect Star Term Plan is an impressive fit.
2. LIC Tech Term Plan
Among the different policies issued by LIC, one stands out—LIC Tech Term Plan. Although the terms may play into the online sector, the premium plan adequately provides the family with financial security in the event of the insured’s untimely demise.
The LIC Tech Term Plan is ideal for the urban dweller who wishes to invest in a quick settlement for their life. The Death Benefit provides the beneficiary with a lump-sum amount which is equal to 7 times the annual premium. It can be taken in increments over 5, 10 or 15 years.
The LIC Tech Term plan adheres to smooth working and the recipient’s advantages.
3. Max Life Super Term Plan
A valuable and all-inclusive policy by Max Life Insurance Company, the Max Life Super Term Plan is a worthy consideration of insurance policies. With this policy, there is an active increase of 5% in life cover. Although there is no maturity benefit, the death benefit helps your family while beating inflation.
The Max Life Super Term Plan comes with flexible policy terms and payout options. It consists of multiple added benefits, increased monthly incomes and full-frontal financial protection for your family in the case of the insured’s untimely death.
4. HDFC Life Click 2 Protect 3D Plus Plan
The HDFC Life Click 2 Protect 3D Plus Plan from HDFC Life comes with a variety of customizable options to acquire a plan that fits you perfectly. With a total of 9 plan options, this plan helps your family’s financial status in different methods.
There are additional options to increase your cover with ease and special premium rates for female insurance appliers as well. There is also certain flexibility in choosing policies and premium payment terms. Tax benefits are also specified throughout the various plan options.
While life’s uncertainties may trick you into anxiety, you can stay a step ahead of grief and sorrow by opting for life insurance plans. You must choose the best policy in either term insurance, or whole life insurance, by accurately assessing your financial needs as well as those of your loved ones. Life insurance plans can help you and your family with effective financial security in the future.