When it comes to selecting the best life insurance plan, there is lot of planning and risk-assessment involved. Your financial planner or insurance agent will want to know:
Your salary and other sources of income along with liabilities like loans so as to calculate your human life value. This is the key input for taking life cover.
Whether you are willing to take risk
What are your important life goals in terms of planning for child's education, marriage or your own retirement
Your investment time frame viz. 10 years/20 years/30 years
The financial planner will select the best life insurance policy that meet's you needs based on these inputs.
The best insurance plan
Having said that, there are some unique and innovative features across insurers / insurance plans that individuals must seek out while finalizing their insurance choices.
Some of these features include:
Go for the insurance plans that offer a wider range of options in terms of plans/options in case of a ULIP or riders in case of life cover plans like term plans and endowment plans. A wider range of choices means you have a better choice of finding the most suitable plan/option for your risk profile and investment objective.
Buying life insurance should be convenient and hassle-free. Go for an insurance plan that is easier to buy - like for instance over the internet.
Insurance does not come for free; there are charges and expenses involved towards life cover, fund management, administration, agency or distribution and so on. Go for insurance plans with the lowest expense since this means lower premiums for the same cover. In case of ULIPs, lower expenses reflect in returns over time. On the same lines, certain companies offer discounted premium rates on term plans for non-smokers, for examples.
Go for insurance plans that offer more flexibility to choose the policy term. So an insurance plan with the minimum entry age and maximum maturity age is preferable since this ensures you are covered for a longer period of time
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