There are a good number of insurance products available in the country. When it comes to life insurance,Â
individuals can choose from term insurance, term insurance with return premium, unit linked insurance plans, endowment plans, group life insurance, child insurance plans, retirement plans, etc. Having multiple options is a good thing for customers, but choosing the right plan becomes difficult at times.
Life Insurance Plan: After Corona, the trend of taking life insurance and health insurance has increased rapidly. People often face this problem while taking life insurance that how to choose the right plan. Today we will tell you such things that will make it easier to choose the right plan.
There are a good number of insurance products available in the country. When it comes to life insurance, individuals can choose from term insurance, term insurance with return premium, unit linked insurance plans, endowment plans, group life insurance, child insurance plans, retirement plans, etc.
Having multiple options is a good thing for customers, but choosing the right plan becomes difficult at times. In such a situation, if you keep these four things in mind, then you can easily choose the right life insurance plan for you –
Determine the goal To
get the right insurance, it is important that you first keep your aspirations and needs in mind. Set your goal on the basis of this. An ideal insurance plan should match the future security of those who depend on you.
Term plans with affordable premiums and high cover can be a good option for the youth. One should also consider investing in a retirement plan. This will help in adding a fund with regular income in your later years and ensuring a comfortable life after retirement.
Doing Research Required
Once you have listed down your future and long term needs and goals, it is important to do thorough research on all the products. Be sure to do a thorough analysis before deciding on a specific insurance plan among the plethora of policies available in the market.
Deciding on the premium paying term
It is always a better advantage to pay the annual premium till the end of the payment term. It ensures financial security for the dependents. Maturity Benefit is an additional benefit where the accumulated amount is paid to the policyholder after the maturity of the plan, provided one has paid premiums on time on a regular basis.
Choosing the Right Sum Assured
While choosing the right plan, it becomes imperative to choose the right sum assured. The Sum Assured depends on the Human Life Value (HLV) or the financial value of the policyholder.
At the same time, it takes into account the income-expenditure and future responsibilities and liabilities and financial goals at different stages of life. A lot also depends on the pre-determined and constantly evolving life goals of the individual and the family.
One-size-fits-all approach does not work when choosing an insurance plan. It is important to set your own goals, and take the first step in the journey of making insurance, especially life insurance, an integral part of your future and financial planning.
