In this way, you can choose the right life insurance plan, know complete details

Life Insurance Plan: This will help you to combine a corpus with regular income in your later years and ensure a comfortable life after retirement.

To get the right insurance, it is important that you first keep your aspirations and needs in mind. Set your goal based on this

Life Insurance Plan: It is very important to choose the right life insurance plan, but sometimes there is a problem in choosing the right life insurance plan. In such a situation, we are going to tell you about such easy ways, with the help of which you can easily choose the right life insurance plan for you. There are a good number of insurance products available in the country. When it comes to life insurance, individuals can choose from term insurance, term insurance with return premium, unit linked insurance plans, endowment plans, group life insurance, child insurance plans, retirement plans, etc.

Having multiple options is a good thing for customers, but choosing the right plan becomes difficult at times. In such a situation, if you keep these four things in mind, then you can easily choose the right life insurance plan for you –

set a goal

To get the right insurance, it is important that you first keep your aspirations and needs in mind. Set your goal on the basis of this. An ideal insurance plan should match the future security of those who are dependent on you. Term plans with affordable premiums and high cover can be a good option for the youth. One should also consider investing in a retirement plan. This will help in adding a fund with regular income in your later years and ensuring a comfortable life after retirement.

Once you have listed down your upcoming and long term needs and goals, it is important to do a thorough research on all the products. Be sure to do a thorough analysis before deciding on a specific insurance plan among the plethora of policies available in the market.

Setting the premium payment term

It is always better to pay the annual premium till the end of the payment term. It ensures financial security for the dependents. Maturity Benefit is an additional benefit where the accumulated amount is paid to the policyholder after the maturity of the plan, provided one has paid premiums on time on a regular basis.

Choosing the Right Sum Assured

While choosing the right plan, it becomes imperative to choose the right sum assured. The Sum Assured depends on the Human Life Value (HLV) or the financial value of the policyholder. At the same time, it takes into account the income-expenditure and future responsibilities and liabilities and financial goals at different stages of life. A lot also depends on the pre-determined and constantly evolving life goals of the individual and the family.

One-size-fits-all approach does not work when choosing an insurance plan. It is important to set your own goals, and take the first step in the journey of making insurance, especially life insurance, an integral part of your future and financial planning.

(The author is Sanjay Tiwari, Chief Strategy Officer, Exide Life Insurance)

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