A life insurance policy is a protection plan that acts as a financial shield for your family in the event of the death of the insured. The main objective of this plan is to give the Life Insured the peace of mind that his family is taken care of in his absence.
There are a number of protection plans offered by different providers at varied prices. So, what all things you need to consider before comparing between different plans? Read on to know more.
Objective: Lay down a clear objective of buying the protection plan. Analyse your budgets and plan your finances accordingly. It is vital to be clear in your mind as far as objectives are concerned because different policies provide different set of benefits.
Tenure: A term plan only offers protection for a pre-determined period of time. Evaluate the time frame during which you need a protection.
Price: This is the most important factor to consider before comparing different policies.. Moreover, there are several other factors that affect premium rates such as pre-existing diseases, age, family history, etc.
Claim settlement ratio: It is the ratio that indicates the number of policy claims that get honoured by the insurance companies. A high claim settlement ratio is an indicator that the insurance company has a better record of settling claims.
Convenience: Check if the provider you are selecting is allowing you to buy the policy online. The online facility makes the whole policy buying procedure convenient and hassle-free. Moreover, the paperwork and the documentation reduces to a great extent.