Get Life Insurance Quotes for Free | How to Buy the Best Life Insurance?

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Agent Offering Life Insurance Policy
Agent Offering Life Insurance Policy

Comparing life insurance quotes is critical for buying the life insurance policy that meets your financial goals. Therefore, always ensure that you compare quotes before you shortlist quotes and invest in a plan. A quick search online will give you tens of results across various life insurance companies and plans that you can choose from, helping you narrow down to a specific plan. 

But, just comparing life insurance quotes is one thing. How do you buy the best life insurance policy that ensures that you have the best of both worlds? We are here to help! 

In this article, we will look at a few points that you should keep in mind while choosing a life insurance policy so that you invest your hard-earned money into the right policy. 

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Premium Vs Sum Assured 

Since there are tens of insurance plans available in the market, the end-consumer has literally countless plans that they can choose between. That also means that for the same amount of premium you may get a sum assured that varies across plans, meaning a particular plan may offer you a higher sum compared to the other; however, even then, there is something else that you must keep in mind as a lower premium with a higher coverage may not be the best option unless it meets some the next points we discuss. 

Reputation Of the Insurance Service Provider

The reputation of the insurance service provider in terms of their solvency, market presence, assets held, number of subscribers, etc., are a few of the most crucial parameters. Therefore, no matter which insurance service provider you want to go with, it should be based on thorough planning and research. Look up the company in terms of how successful they are in terms of these parameters, as that would ensure that your claims are honoured and the money that you invest today gets you the returns you deserve tomorrow. 

Riders and Benefits

A life insurance plan is not only about the sum assured; it’s also about the additional riders and benefits that it offers. Check for riders and benefits such as critical illness cover, accidental death benefit, disability benefit, etc., should be a few of the things you must consider before buying a policy. The premium that you pay on the policy should give you more than just a life cover, shouldn’t it? After all, what is a recurring deposit if it doesn’t come with additional benefits! 

Retirement Benefits

Some life insurance policies, such as endowment policies, come with a savings/maturity component and offers a lumpsum payout in the form of guaranteed returns once the policy has matured. While some others give you a regular payout for a set period after the policy has matured. Both these types of benefits come on top of the life cover benefit and can make for a great retirement plan as you get access to a lumpsum amount and/or regular payouts as part of the policy. So, if you are someone who wants to retire rich, it’s best to start planning early. 

Market Linked Returns 

Plans such as ULIPs offer even greater returns by giving you the dual benefit of a life cover and investment. By investing some percentage of the premium that you pay into market-linked plans such as equity, debt, etc., you can accumulate a large sum of money over the period of the policy. However, since it’s a market-linked policy, ensure that you know your risk appetite before investing.

Settlement Ratio

What good is a plan if it doesn’t deliver when most required? Therefore, always check out the insurance service provider’s settlement ratio to figure out the ones that have the best reputation when it comes too honouring claims. A life insurance policy is an investment to safeguard the financial future of one’s family, so should the policyholder pass away, their family shouldn’t have to run from pillar to post to get their claims honoured. 

Tax Benefits 

A life insurance policy offers tax breaks up to ₹1.5 lakhs in a financial year under Section 80 C of the Income-tax Act. This lets you save taxes and invest that money into building a financially secure future for yourself and your family. 

You must know what recurring deposits are. A life insurance policy is unlike any other investment plan out there. The easy liquidity of the policy ensures that funds are immediately available to one’s family in case of the death of the policyholder, while other investments might take weeks and sometimes even several months to liquidate.

If you are looking for a great insurance policy, Max Life Insurance has some of the best life insurance plans in the market that stand out even when you compare life insurance quotes due to the numerous benefits they offer at affordable premiums. So, if you are thinking of buying a life insurance policy, do check them out today! 

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