Life is full of potential risks and dangers. Nobody can be extremely sure that they won’t be hit by an accident in the coming year or that there won’t be any misfortunate event in their life. Yes, we hope for the best of luck for us, but accidents and illness can happen anytime to anybody. And of course, we all know that even death is going to reach us at some point in life or another. So, have you thought about how you will deal in future if you are forced for sudden medication or hospitalisation or how will your family deal with the finances when you die? This is the primary reason why many of you opt for the best life insurance policy you could get your hands on. However, just ensure that you follow this checklist while applying for a life insurance policy so that you and your family get maximum benefit from it when you need it urgently.
- The need to buy the life insurance policy — To ensure that the insurance plan you choose is the best life insurance policy for yourself, keep in mind your basic motive to apply for the same. For example, you can opt for a term life insurance policy which provides you long term benefit and after you pass away, your family gets an insurance amount through it. Then there is also the Unit Linked Insurance Policy which lets you invest in the market while getting some amount as a life insurance cover. Then you even have a critical illness plan, retirement policies and pension plan that help you get the insurance money either as a lump sum amount or as a monthly or annual annuity.
- Calculate the cover amount you need — Another thing to keep in mind while applying for a life insurance policy is the cover amount you will require at the time of its maturity. Some of you make a huge mistake of only calculating the cover amount as per the premium you paid for it. However, you have to keep in mind several other factors like the inflation rate currently and after a few years, the amount of years that you are counting for the insurance, your present health and so on. If you want, you can also refer to the insurance calculators available online or ask an expert about the same before applying for a certain insurance policy.
- Do compare the policies once — You will get a number of plans when you think of the life insurance policy that would be ideal for you. But choosing the right one for you is important to ensure that it is the best life insurance policy for yourself. Do compare the benefits of various plans, the tax benefits you get from them, the cover amount, the options to invest in the market and so on. After analysing these factors you can pick the insurance plan that provides you with all the advantages you are searching for.
- Do read the final form carefully — Terms and conditions mentioned in the insurance application form can be very tricky and you might not be agreeing to certain points. To make sure that you don’t face any difficulties about it in the future, do read the offer document carefully before investing in it.
