Quick Tips To Know Before Making An Insurance Investment!

The world is a dangerous place and the need to protect our loved ones from unforeseen circumstances is as important as ever. Life insurance is something that helps us protect ourselves from these mishaps.

A life insurance company offers their clients the possibility to invest money in life insurance in exchange for coverage against the risk of death. However, before making such decisions, you should give it a serious thought and try to avoid unpleasant surprises.

Whether you’re investing in life insurance for yourself or your children, there are some things you should keep in mind to make the most out of your investment. This blog talks about a few of those things that you need to keep in mind before going ahead with the investment.

Understand Your Needs

How much are you contributing to the family income, and how much depend on your income? Is there anything that your family can count on to pay expenses and repay debts after your premature death? Answers to these questions should help you decide how much life insurance coverage you need.

An insurance agent might be able to educate you about life insurance products and help evaluate your insurance needs. With an assessment, the amount of life insurance you buy could provide financial protection to your family after your death. Certain life insurance companies also provide a 5 crore term plan for comprehensive protection.

Choose a cover that you can afford

When choosing a life insurance plan, you should consider the premium amount and the entire duration of the policy. Ask yourself whether you can afford to pay premiums for the entire term of the policy or not.

If you’re looking to save cash, a term insurance policy is a good option. You could go for a savings-cum-protection plan if you think you’ll be able to pay your premiums without issues in the future.

Check The Claim Settlement Ratio of The Company

There are some sources that you can use to check the claims payment ratio of your insurance company. You need to check the claims history of the insurance company to make sure that your family can get the required benefits easily after your death.

The IRDAI also provides information on its website about insurance claims. Most life insurance companies would have rejected some of these claims but you need to check the reasons behind the decisions to be on the safe side.

Consider Purchasing the Policy Online

A large number of insurance policies are being sold online, and potential buyers can save even more on these by avoiding commissions. Agents and brokers sometimes take a percentage of your premium as a commission, which can drive up the cost of a policy.

The internet makes it possible to cut out the middlemen and hence reduce the price. The insurance products are still the same, but they’re advertised and sold differently. Therefore, make sure you consider purchasing a policy online to save money.

Also Read: Learn How to Compare Life Insurance Quotes with this Easy Guide

Best Life Insurance Companies and Their Savings Plans

Canara HSBC Oriental Bank Of Commerce Life Insurance Guaranteed Savings Plan 

Canara HSBC Oriental Bank of Commerce Life Insurance’s Guaranteed Savings Plan pays you guaranteed benefits upon maturity provided that all due premiums have been paid. It’s one of the most flexible savings plans in India that allows you to personalize your investment experience. You pay only for a limited term under the Guaranteed Savings plan, while you are covered for the entire term. Moreover, if you die during the term, your beneficiary (family, etc.) will receive a lump sum benefit. It even offers flexible premium payment options so you can align your savings horizon to your important financial goals.

Birla Sun Life Insurance – Bachat Endowment Plan

The Birla Sun Life Insurance Company’s Bachat Endowment Plan is a traditional, non-participating endowment plan that guarantees returns on your investments. This plan requires you to pay premiums for the full 20-year term. The total amount of money guaranteed with this plan is 180 times your monthly premium. When you’ve paid the monthly premium for 20 years, you’ll receive the guaranteed amount as a maturity benefit. If you die within the policy term, your beneficiary will receive either your sum assured or the number of monthly premiums you’ve paid so far, including loyalty additions and bachat additions.

Max Life Insurance – Platinum Wealth Plan

Max Life Platinum Wealth Plan provides market-linked returns on your investments, as well as wealth boosters to help you accumulate enough money to reach your long-term goals. Your savings will be used to protect your family, even after you are dead. The policy has no administration charges once you’ve completed five years and you also get to enjoy great flexibility in terms of premium payments and policy terms.

SBI Life Insurance – Smart Wealth Builder

SBI Life Insurance offers you protection with supplementary investment. You can choose any number of investment funds to invest in, and the return is guaranteed on top of what you get from your life insurance policy. The plan offers security in case of an eventuality, reliability through guaranteed additions every year, the flexibility to manage the invested money as per your choice, and can also be withdrawn upon maturity or partial withdrawals starting after 6 years.

Bottom Line

Life insurance can be a great way to ensure that your loved ones are taken care of if something happens to you. There are many things to keep in mind before investing in life insurance, regardless of whether you are using it for your business or personal needs. While the best option is to take the time to look over your options and figure out what will work best for you, make sure to keep the aforementioned things in mind before investing in a policy through a life insurance company.