Life insurance plans can really protect you from the uncertainties of life. It provides you with the opportunity to handle your finances and plan for your future goals. It also gives you the power to guarantee the financial freedom of your family after you are gone.
There are many unprecedented situations that can arise in your life that could potentially require you to have a backup plan so you can maintain the financial security of yourself and your family; an insurance policy provides that support when you need it.
The best life insurance policy in India provides exceptional maturity returns along with guaranteed death benefits. Along with that, it also helps you get into the habit of saving and investing, and that in return helps you grow your wealth and increase your overall net worth.
Now that you know how the best life insurance policy in India protects you and helps you grow let’s learn more about the different types of life insurances you can buy and how you can choose the best life insurance policy in India for your needs.
Types of Life Insurance Plan
There are various types of insurance plans, all of which have different purposes; you can choose the plan that best suits your future goals and requirements. Here are some of the most popular and best life insurance plan in India:
- Term Insurance A term insurance policy is a life coverage insurance policy with no built-in savings prospect. It is one of the best life insurance policy in India, which is very popular due to its low premium rates and high coverage rates for an extended time period. The low premium rate is possible as these life insurance plans do not have any savings prospects and offer no maturity benefits as would for other life insurance policies.
- Unit Linked Insurance Plan
A unit linked insurance plan, or ULIP, is one of the best life insurance policy in India because it combines the benefits and rewards of both investments and insurance. You get high returns from this insurance plan because your money is directly invested in the stock market.
If you do not have a clear idea of how much insurance do you need? You can use ulip calculators available online to figure out the numbers as per your goals and financial requirements.
In a ulip plan, you also get death benefits as you would for regular life insurance plans. If you live/survive through the term of your life insurance plans, you will get the maturity benefits as well as the additional bonuses your investment has acquired over its term.
- Money Back Policy
The money back policy is perhaps one of the best life insurance policy in India around which you can plan your entire life. These policies are special because they offer returns throughout their term post the lock-in period, which differs from other insurance plans as they don’t share any returns until maturity.
You also get great returns on these policies with minimal risk. You also get death benefits and maturity benefits even after getting the survival benefits that are paid out at regular intervals throughout the term of the insurance to the policyholder for being alive/surviving.
These policies are great for long term wealth generation, and the guaranteed returns make these policies one of the safest and best life insurance policy in India.
How to Choose the Perfect Life Insurance Plans for You?
Choosing a life insurance plan depends on many variables that you need to keep in account. These factors will help you choose the best insurance policy that you can get. You need to consider these factors even more because an insurance policy is a long-term investment plan, and if you go into it without proper information about the policy and how they relate back to your financial goals, your goals and dreams will not be fulfilled or at least not be fulfilled in your desired timeline. With that knowledge, let’s look at the factors that can help you choose the best life insurance policy in India for you.
- The premium you need to pay needs to be correctly checked and understood; often, insurance companies charge lower premiums, but the providers remove important features from your policy that could, in the end, hamper or lower your claim value. In the worst-case scenario, they can downright reject it because your claim cause will be shown as not covered under the policy.
- You need to study the add-on riders available with your policy; buying some of these add-on riders can improve the coverage of your policy and give you additional benefits that can help you cover unexpected situations and expenditures.
- You must choose your insurance provider carefully, and one of the best ways to do that is to check the claim settlement ratio of the insurance provider of your choice. If the insurance provider has a low claim settlement ratio, the probability of you facing difficulties when submitting your claim will be more.