India’s life insurance penetration is very low compared to what it should be. Not many people are aware of the insurance plans. They don’t know what is ulip or what a life insurance plan brings to their lives.
It would be best if you had the protection of the best life insurance policy in India because accidents and misfortune can hit anyone. If you are the sole breadwinner of your family, what will your loved ones do if something happens to you? Who will take care of their needs? But if you have a life insurance cover, you can be assured that your loved ones will be protected against the financial stress of losing an earning member.
A best life insurance plan is a necessary investment that makes you feel secure and gives you confidence in the knowledge that your family can continue living the same life, even if you are no longer there.
Here are some of the features of the best insurance policy in India that makes it such an important investment in your financial portfolio.
- Issued in the name of the policyholder
A policyholder is the one who pays the premium for the life insurance policy to be active. The contract is between him and the life insurance company. One of the main features of a life insurance is that it can only be issued in the policyholder’s name. While typically, the life insurance plan only has one policyholder, sometimes one may also be able to open a joint life insurance account.
- Payable premium
A premium is an amount a policyholder is liable to pay to the insurer to cover their life. You can choose the premium amount as well as the frequency of payments as per your preference. However, you need to pay the premium amounts regularly to be able to enjoy the benefits when the time comes.
- Maturity benefit
A maturity benefit is paid to the policyholder when the policy term is completed, and the contract terminates. The insurer is liable to pay the sum assured only in two circumstances – when the policyholder dies or when the policy matures. However, if you invest in pure term plans, there is no maturity benefit because the sum assured is only paid at the time of death.
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- Sum assured
This is a significant consideration when investing in a life insurance plan. Even the best life insurance policy in India will fail to deliver its benefits if you do not choose the sum assured accurately. It is defined as the amount that is paid upon the policyholder’s demise or policy maturity. Sum assured is meant to cover all the expenses and liabilities of your dependent family members. As a general rule of thumb, keeping the sum assured value at least 20 times your annual income is advisable to adjust for inflation. It would help if you also kept in mind that this amount can be customized to suit your budget and needs.
- Policy Term
Policy term is the duration within which the insurance provider will provide cover to the insured person. It is also the time period within which the contract is active. You choose the policy term at the time of buying your policy. The best life insurance plan will protect the end of this time period. You can customize the policy term as per your needs and requirements. For example, you can choose to stay covered for 20 years if you want your life insurance policy for only 20 years. Some plans will provide you coverage till the age of 99 or more.
A nominee or beneficiary is the one who is listed in the life insurance contract as the person entitled to receive the benefit in case the policyholder dies. It would be best if you assigned a nominee at the time of buying the policy. However, you may also be allowed to choose the nominees at a later stage. What’s more? You may also be allowed to change your nominees at any point during the tenure of your policy.
After the insured person’s demise, the policy beneficiary can file for a claim with an insurance provider to receive the benefit. However, to ensure that you receive the promised sum assured, you must always buy a policy from trusted insurers with a claim settlement ratio over 90%.
The best life insurance policy is not that hard to find if you know where to look. All you need to do is understand the key benefits and features to compare carefully before buying a policy. Many insurance providers, like Max Life Insurance, offer helpful online tools to compare and buy policies online.