Some Factors to Consider Before Buying a Life Insurance Policy This Year
Life insurance premiums are something that might differ from person to person; this is so because the premiums and interest rates might fluctuate depending on the person’s age, annual income and the bank he chooses. It is a fact that the younger you are, the lower is the premium you might be charged. So remember to buy a policy as early in life as possible in order to avail a long-term, low-cost cover that would take care of both you and your family. So here are some of the major factors that you might want to look forward in case you are planning to choose a perfect Life insurance plan for 2015.
Calculate what your exact needs are
While calculating the coverage, you might be required to completely cover all your needs, consider all your present and future financial obligations, as well as the needs of your loved ones. Life insurance plans are one of the most popular plans; they are the most used protection plans that offer some of the highest coverage along with the lowest possible premiums.
Always Look For Ways to Protect Yourself from Inflation
While buying any kind of a term insurance plan, always remember to take into account the critical factor of ‘inflation’. Remember, a cover of Rs.50 lakh may look as something that is sufficient today; however, that might not be the case 20 years later. While deciding the amount you want to cover yourself for, thoroughly consider how the rise in prices might affect you in the future.
Claim Settlement Ratio
A claim settlement ratio is one of the highest determining factors of a financial institution. It informs you about the number of policies settled by the firm by paying back the amount in cases involving the death of a policy holder. Having a high-claim settlement ratio determines that the insurer is reliable and can be trusted for taking a term plan.