There are several financial products that are available in the market in which you can invest with the purpose of expanding your hard-earned money. Products like fixed deposits provides a lower but fixed return while the others such as mutual funds provide higher returns, however, are subject to the market’s vagaries.
Life Insurance, contrary to them, is the only financial product that places a monetary value on the life of the insured with a promise to protect this value by insuring it.
LIC term plan can be taken into consideration as the foremost investment option, because only life insurance makes sure that your family is financially secured even after you are no longer around to provide for them. That is the main reason why LIC term plan is a wise financial decision as it will not only safeguard your life but also the lives linked to you.
Yet, as per the insurance industry reports, approximately 2.72% of the population of India has accessed the perks of best LIC term plan online. However, a market expansion rate of approximately 12% displays that more people are now appreciating the value of life insurance and buying LIC term plans.
How to compare one life insurance with another?
There are many LIC term plans options available nowadays. Choosing the right one for your family is an essential decision as this is, definitely, the best and the most important form of financial protection that you can provide to your family.
There are three primary components in the LIC term plans package:
- Coverage or the full amount of insurance that you want to purchase.
- Annual premium or the amount of the money that you will have to pay per year to keep the insurance active.
- Term or the number of years of insurance coverage that you want.
The amount of the premium varies from person to person and relies on individual factors like the age of the insured, type of profession, health status, number of years that the premium will be paid, Sum assured chosen and much more.
In order to better comprehend how to compare various insurances, it is important to break down the procedure so that you know at which point the comparisons have to be made:
- Step 1: The three fundamental decisions to be made at the beginning are:
- What is the full LIC term plan insurance coverage that you want?
- How much annual premium are you comfortable paying?
- How many years do you want the coverage for?
- Step 2: Take the alternate quotations from at least 4 to 6 insurance companies. This can be done in many ways:
- Get the quotations from each insurance company with the help of agents.
- Speak to an insurance broker that represents numerous insurance companies.
- Employ the use of the online method at coverfox.com to compare and analyze term plans from your chosen baskets of insurers.
- Take the help of an insurance aggregator, a virtual moderator that will take your needs and offer comparative options from different companies.
- Step 3: Compare multiple rider options and judge the ones that you must add to your LIC term plan.
- Step 4: Asses other factors that are equally vital like customer support network, the speed of service, the attitude of the representatives, credibility and claim settlement history of the insurer. After all, the real worth of the insurance is not just the monetary amount, but also the ease with which your beneficiary can submit claims and the speed at which the death benefit payment can be made.
Thus, the features that should be compared before making the final decision regarding the term plan are:
- Maximum and minimum age for buying the term plan insurance.
- Policy term.
- The annual premium amount for various age groups.
- Sum assured or maximum policy amount.
- Ease of paying an annual premium.
- Usefulness of riders
- The simplicity of the pre-insurance health check-ups and other requirements.
- Tax benefits.
- Claim settlement procedure and record for the insurer.
In conclusion, it can be said that your decision of which term plan to buy is fully dependent on the specifics that you are seeking.
You can get several quotations from different insurers by simply going on Coverfox websites and employing the use of the online calculators. Since the whole procedure is online, you will not be dependent on the insurance agent to offer adequate details as you can speedily evaluate various permutations and combination on your own.
Assess all the parameters judiciously before purchasing LIC term plans for your future stability.