How to choose the best life insurance policy?

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How to Choose The Best Life Insurance Policy?
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• Having a life insurance policy provides you with
  the much needed financial security in times of
  unfortunate death of the policyholder.

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Benefits Of Life Insurance Policy

• Protects your familys financial future
• Provides financial help during medical emergency
• Is an investment tool that helps you save money
  for your childs marriage, education and your
  retirement.
• Helps in paying off loans and liabilities
• Helps build retirement corpus
• Helps you leave an inheritance

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Types of Life Insurance Policies

• Provides life insurance coverage to an individual
  till the age of 100 or as long as he survives.
• Policyholder is required to pay premiums until
  death or till a specific period of time.
• The nominee is paid the sum assured along with
  bonus on death of the insured.

Whole Life Insurance Policy
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• This type of insurance plan provides death
  benefit to the beneficiary only if the insured
  dies during the term of the policy.
• It offers high coverage at low premium rates.
• A pure protection plan does not provide any
  maturity benefit.

Term Insurance

• It is a mix of savings and insurance that helps
  you build financial corpus while providing
  protection.
• In case of death of the policyholder, the benefit
  is paid to the nominee.
• In case of survival, maturity benefits along with
  bonus (if any) is given.

Endowment Plan
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• This is a savings cum protection plan that
  provides a certain percentage of sum assured to
  the policyholder at regular intervals.
• Pay-outs are generally at regular interval i.e.
  every 4 or 5 years.
• Survival benefit is paid if the policyholder is
  alive.
• On death of the policyholder, the nominee
  receives the full sum assured along with bonuses
  (if any).

Money-back policy

• Helps you build wealth for your childs education
  or marriage.
• Protects your childs future in case of your
  unfortunate death

Child Plan
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• This type of plan provides you with a steady
  income flow post retirement.
• Helps you build a healthy financially secure
  future

Pension Plan

• This is an investment cum insurance plan.
• A part of the premium is invested while another
  part is used towards life insurance.
• These plans provide market linked returns along
  with flexibilities on managing investments and
  withdrawals.

Unit Linked Plan
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How to Calculate How Much Life Insurance You Need?

• Decide whether or not you need life insurance
• Firstly, determine whether or not you need life
  insurance
• If youre single and dont have any dependents,
  then you may not find the need to buy life
  insurance
• If youre married and have kids, then its
  advisable to buy life insurance
• Estimate your familys living expenses

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• How much coverage do you need?
• Depending on your income, your liabilities,
  assets, your income, your life goals like childs
  marriage and education, lifestyle, you can
  calculate the coverage you need.
• Its a thumb rule to opt for a life insurance
  cover 15-20 times more than your income.

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How is Life Insurance Premium Determined?

• Your life insurance premium is determined by the
  following factors
• Age
• Gender
• Health
• Smoking Drinking Habits
• Lifestyle
• Family medical history

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Conclusion

• You can choose the best life insurance policy by
  keeping the above things in mind and also by
  choosing the best type of life insurance.
• Recommended Read How to choose and buy the best
  life insurance policy in India?