Any decision regarding finances, small or big, can get really stressful, especially if you don’t have the required knowledge. It has been well established that investing in a life insurance policy is the right way to go to ensure financial stability in the future. It is an agreement between the policyholder and the insurance company that an insured sum will be paid out to the nominee in case of the policyholder’s death. This is done through a series of regular premium payments to the insurance company to build up your savings.
Buying a life insurance policy, however, is not exactly the easiest process; there are multiple things one needs to pay attention to and make an informed decision. Here is a list of everything you should check while buying one:
- Coverage Amount: This is the most important aspect of a life insurance policy as you have to decide the amount that will be paid out at the time of your death. For this, multiple things need to be taken into consideration, like your current financial responsibilities, your family’s current expenses and their future needs, inflation costs and such. Make sure you think this through instead of going with a standard number, as the coverage amount should always reflect your needs.
- Riders: Most life insurance policies provided by companies are open to customisation. This is extremely important as you should personalise your plan and make sure it suits your needs perfectly. Many companies offer additional benefits in a life insurance policy like personal accident benefit, critical illness benefit, etc.
- Policy Exclusions: In any insurance policy, it’s just as important to know what is not included in it as it is to know what is. Sometimes, it is very easy to have the wrong idea about your policy through things you have read elsewhere. Policy exclusions are included in your documents, so read through them carefully before finalising your deal.
- Claim Settlement Ratio: Knowing the industry image and history of the insurance company you choose is very important. This includes their claim settlement ratio, as it reflects on their efficiency when it comes to resolving claims. For example, ICICI Prudential Life has a high claim settlement ratio of 97.8%, giving you a guarantee of a quick and convenient payout when needed.
- Professional Guidance: Even after having a clear direction on all aspects when buying a life insurance policy, taking a second opinion from a professional will always help. It will give you insight into things you may not have noticed and guide you towards making the best decision for yourself and your loved ones.
Keeping these tips in mind, buying a life insurance policy should surely be an easy process for you. Investing in one is the right step to take towards a financially secure future for your family, especially in difficult times. Check out ICICI Prudential Life’s life insurance policy and buy the ideal one from one of the most trusted insurance companies in India! Your future is bound to be in safe hands, so start looking.