Life is full of uncertainty and anything can happen anywhere at any time. A life insurance policy serves as an airbag for your family and provides monetary security against any untoward incidents. Once you have understood the need to apply for a life insurance policy, you should also understand the best LIC plan you should choose for yourself and your family.
1. A married person has different responsibilities as compared to a single one. The insurance cover amount should be chosen according to the number of people in a family. It should be chosen keeping in mind the additional future responsibilities.
2. A life insurance policy should be such that a person should be able to sustain their current lifestyle.
3. The insurance cover amount should be decided as per the family’s requirements & income and not simply just your income.
4. The best LIC policy should cover all the liabilities of a person such as short-term loans, personal loans, housing loans, and vehicle loans. The burden of EMI repayment should not fall on your family. It should cover the cost repayable of outstanding loans if a life insurance plan is availed.
5. The claim settlement process of a life insurance plan should be effective enough to exist up to the commitment of giving monetary compensation. Claim Settlement Ratio is a proportion rate of the amount of interest paid to consumers by the insurance company to the entire claim initiated by the corporation. This is represented in the form of a percentage value.
6. Some of the life insurance plans comes with riders. Aside from the death benefit extended by a term plan, riders like disability cover, damage of employment cover, waiver of premium cover can also be availed by spending a little cost for the added premium services.