In the last couple of decades, the available options while buying an insurance plan have gone up by several folds. There are a plethora of life insurance companies and banks that are now providing you some of the best options in the insurance sector. These insurance policies are available with or without the investment plans and you can select one based on your insurance need and the money in hand.
While choosing the right insurance plan, it is very important to select the best possible company with a fair track record in clearing the claims. Also, the insurance policy should have specific benefits that secure you and your family’s future. The following are the points that you should keep in mind while opting for your insurance plan.
Where to begin?
You need to understand your current and future liabilities. If you are unmarried, you can start with a smaller plan and invest further with riders and top-ups.
Choosing the right one
There are four main types of insurance policies which are available with the life insurance companies in India.
- The first one is the term insurance plan which is affordable and needs only a small amount of premium every time. This insurance plan is best suited for those who want good cover in case of demise but do not have enough funds to invest.
- The second one is the Whole Life Insurance Plan which has a higher premium than the term insurance. These plans are best suited for those who do not want to invest,however,want good cover in case of the death of the policyholder.
- If you want to invest for the savings and the bonuses, then the endowment plan is the best fit for you. The sum assured is either paid to the survivor of the policyholder or the holder if he or she survives.
- The last option is the ULIP plan which is a combination of investment and insurance policy. There is a risk involved in this type of policy.Thus, it is always wise to have a term insurance plan on the side with ULIP plan.
For selecting the insurance agency, consider the best life Insurance companies.Always get multiple quotes with all options that will give you a clear idea of what is available and seek an explanation from the agent or company even in case of the slightest doubt. If you have chosen endowment or ULIP plan, make sure to keep an eye on the number and price of the units. If there are additional liabilities that happen to include in future, make sure to top-up the insurance plan to cover them up or add a new life insurance plan. For further questions, please contact us.