A common experience that every growing adult goes through is the ever-increasing pile of responsibilities, especially on the financial front. Managing Finances become a lot as the number of dependents increase, and it is perfectly natural to have their financial security among your top priorities. As the bread earner, you must make sure everyone who looks up to you for stability is covered in case of any unfortunate event like untimely death that renders you incapable of looking after them. As a first step towards this financial stability, choosing the right type of life insurance will provide you with some clarity.
Life insurance is a type of insurance that provides for your financial dependents in your absence. In every type of life insurance, you make regular fixed payments to the insurance company of your choice. This money gets deposited and is later paid out to your dependents as protection. In any life insurance plan options, you can have additional covers as per your requirements. Finding the correct type of life insurance can be tricky without proper guidance, so here are a few tips to keep in mind:
- Be Honest with Insurers: Feeling the need to hide specific details, whether from your financial history or medical one, is very common. However, it is essential to not give in to this and be 100% honest with your insurers while filling out your application. Tell them about any existing policies, medical conditions, financial problems, etc. dishonesty found later can lead to policy termination.
- Consider your Needs in the Long Term: Consider what your dependants’ needs will be in the future. If you repay debts, pay education fees, or any other bills, think about your contribution before choosing one.
- Calculate Ideal Tenure and Coverage Amount: Make sure you calculate the insurance tenure well as you don’t want your policy to lapse when your loved ones are not in requirement of it. Calculate your income per annum along with expenses and choose a policy that accommodates all of it. You can find some very affordable policies like ICICI’s Prudential Life at low-cost premiums every month.
- Look at the Types:The main two types of life insurance of term life insurance and whole life insurance. Other than this, there are many others like unit linked insurance plans, endowment plans, child insurance plans, group life insurance, etc., that you should take a look at to find the right one for you.
- Don’t be Scared of Riders: No one type of life insurance can perfectly match your needs, so definitely consider riders. Go through different ones carefully like a child term rider, critical illness rider, accidental death benefit, personal accident benefit and more for additional protection.
Along with this, remember to check the claim settlement ratio of your preferred insurance company. Go for the company that has a high settlement ratio and popular, affordable, convenient plans no matter your needs. So take a look at the policy carefully and secure your loved ones’ future.