Things to Consider in the Best Life Insurance Plan
The most common question asked while buying a policy is
which is the best life insurance policy? Well, there is no standardized way of judging a life insurance policy as
the best one because a perfect life insurance policy for your friend can be
useless for you. This is because different people have different requirements
and condition, based on which they search, compare, customize and buy a life
insurance policy. But there are some basic things which a life insurance policy
should offer to its buyer. So we will consider life insurance plans in the
category of the best one if it will provide the basic benefits and availability
of option and through this article, we will look at the things to consider in
the best life insurance policy.
Offer need based
coverage to fulfill financial needs
A good life insurance policy should offer need based coverage to fulfill financial
needs. Your reason for buying insurance determines which type of life insurance you should
buy. A life insurance is not always bought as a protection against life, but it serves many other
purposes also. If you are looking for a pure life protection plan which gives
you the option of risk management against loan and debts, then you should go
with a Term insurance plan. It is an affordable way of buying a life insurance
policy which allows you to choose the policy term. If you are buying life
insurance policy as an investment option with market based return, then going
for a ULIP plan will be the best option. A ULIP plan gives you the opportunity
to invest in stock, bonds or mutual funds with risk cover for the policy
holders. Similarly, if you are looking to buy a life insurance policy for your
child, then you can opt for child insurance plan which provides financial
security and finances major stages of your child’s life like education and
marriage.
Offer flexible Sum
Assured Range
A flexible range of sum assured is the key feature of the
best life insurance plan because it will allow you to choose the right sum
assured. Having the right sum assured will let you avail the actual benefits from
your life insurance policy. You should decide the amount of cover basis your
budget, loan, debts, assets, future financial obligations and your lifestyle.
Being over insured will make your life insurance policy to jump out of your
budget while being under insured will snatch your benefits of life insurance
policy when you will need it the most.
Flexible Premiums
Customization of premium amount is very much necessary so
that the life insurance policy which you are buying can fit into your budget
and needs. A good life insurance policy provides a wide range of premium payment which will
allow you to choose premium according to your need, budget and future
obligations. A policy providing a high range of premium amount will become a
costly deal for you because in life insurance policy, the premium is paid for a
very long duration of time.
Flexible Premium Payment
mode
Flexibility of premium payment mode is very much necessary
in a life insurance policy. Different people have different financial plan and
they work according to that. For some people payment on a monthly basis is
easy, while for others, annual mode is more preferable. A life insurance policy
should offer monthly, quarterly, half-yearly and annual mode of premium
payment, so that you have the option to choose the premium payment mode
according to your convenience. The flexibility in premium payment mode will
allow you to get discounts on your premium also, because when you opt for
annual mode of premium, companies offer a certain discount on premium.
Availability of different types of riders is an indication
of a good life insurance policy. Riders are add on to the policy which gives
you enhanced protection. There are
different types of riders available with a life insurance policy like critical illness
rider, disability rider, accidental death benefit rider, waiver of premium
rider, etc. Each rider comes with a unique feature and serves a different
purpose, for example critical illness rider allows you to receive policy
benefits if you are diagnosed with a specific critical illness. You can
increase the width of your policy cover, according to your requirement by
adding required riders.
So if your life insurance policy is providing these
flexibilities and options, then you can consider it while searching for
different life insurance policies. But while choosing a life insurance policy,
always look for a policy which will perfectly fit to your requirements.
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