How to choose Life Insurance Policy While taking life insurance, we should make a list of our needs so that we can choose the right product while taking insurance. Insurance should always be chosen on the basis of features and not on the basis of premium.
Life insurance has become the need of every person in today’s time. It is a contract between the insurance company and the policyholder, in which the person buying the policy on behalf of the insurance company promises that if something happens to him, his family will be given a certain amount from the company.
Life insurance is also of many types, which include term life insurance, permanent life insurance, ULIP, endowment insurance plan, money back insurance, whole life insurance plan, child insurance plan and retirement insurance plan. After knowing so much about insurance, you must be thinking that why should it be taken?
Benefits of taking insurance
- Insurance provides financial security to your family in case of any untoward incident.
- Tax can be saved on the payment of insurance premium as income tax exemption is given by the government on the payment of insurance premium.
- ULIP, Endowment Insurance Plan and Money Back Insurance are such plans through which you can also invest.
Things to keep in mind while buying insurance
Choosing the right insurance in today’s time is a difficult task, but you can choose the right insurance plan for yourself by keeping a few things in mind.
- First of all, you should make a list of requirements that for how long and how much cover you want your insurance plan.
- You should compare life and term insurance plans etc. to see which plan is offering you more cover at a lower premium.
- You should not choose the cheapest policy due to the greed of low premium, you should also compare the features.
These companies are giving insurance
- HDFC Life Insurance
- LIC
- Kotak Mahindra Life Insurance
- PNB Met Life
- Bajaj Life Insurance
