Life insurance plan is something which gives a family financial security and protection, in case any unfortunate accident cause death of the breadwinner member of the family.
But no surprise that its difficult to opt for a life insurance plan when there are so many options given by different companies. Always remember that you should purchase a plan as per your need and not by following your peers suggestion.
Below we are going to discuss some very important points which should be carefully checked before purchasing any plan:
- Don’t always go for lower premium plans: While choosing an insurance plan, most of the time people tempt to buy one with minimum premium. A lower premium doesn’t confirm that it’s a good plan.
- Look for coverage of the plan : Coverage of the plan means in what all circumstances you can claim the insured amount. Only death coverage is not useful. Suppose the earning member of the family got disabled due to accident or detected with a critical disease because of which he can’t continue his work, then in that situation also one should be able to claim for the insurance to run the expenses of the family.
- Add important riders in your plan: Rider is provision of an insurance policy under which some extra coverages are added for which you are charged some additional cost in your premium. As mentioned in the above point, to get coverage apart from death there are two important riders which are Accident cover and Critical Illness Cover.
- Claim Settlement Ratio: It indicates how many claims the insurance company has successfully settled out of the total claims applied. Higher ratio indicates that insurance policy is good. Suppose an insurance policy has less premium and low claim settlement ratio, then one should avoid such policies. Because if company doesn’t give you the money of your claim in emergency, then there is no use of giving the low premium for such policies.
- Claim Amount settled: This is also one of the parameter to look while buying a policy. Sometimes insurance companies settle a lot of claims of lower amount but refuse to pay money for bigger amount claims. In that case the Claim settlement ratio will be higher as large number of lower amount claims has been settled. But since company did not pay the bigger amount claims so they manage to save large amount of money from there.
Hope these common checks will help you choose best life insurance policy for you and your family. We will be coming up with many more such articles .