With a wide number of options to choose from, one might often get confused with respect to which insurance plan one must choose. Here are a few tips that will help make this decision easier:
1. Do your groundwork about the company offering insurance
It is crucial for you to check the financial history of the company offering the insurance plan. This is to ensure the company is credible and will offer you customized solutions for your insurance needs.
2. You want to choose a basic insurance policy
If you want to pick up a basic insurance policy with no frills, choose a plan with single premium options that offers your family the assured lump sum amount after your death. The policy’s sum assured should be at least 15-20 times your current annual income.
3. If your family has a case of terminal illnesses
If you suspect contracting an illness that runs in the family, it is crucial to get yourself a plan which has a critical illness rider.
4. Accident cover would be an added advantage
For a meagre additional cost, you can get yourself an Accidental Death Benefit plan.
5. Procedure to claim the policy
The procedure to claim to the policy for your beneficiaries should not be time consuming or cumbersome. Understand all the terms carefully before investing.
6. At The Time Of Maturity Of the Policy
It is important for an individual to understand what will happen if policy holder wont die during the tenure of the policy.
7. Rights of the policy holder
Before signing the document, read all the terms and conditions after getting the policy documents so that if you find any of the terms not acceptable, or if you find the policy is mis-sold to you then you can surrender the policy within 15 days.