How To Choose The Right Insurance Policy?

Search and compare policies online

With growing internet facilities, nowadays, you don’t need to go to any financial institution to buy a policy instead you can search for companies that offer best plans online. First shortlist the companies that you think can provide the coverage that you are looking for. What next? Compare all the shortlisted policies to find out the best that suits you. Many online websites like policybazaar.com, apnapaisa.com and myinsuranceclub.com are available to compare the policies.

Choose the policy that fulfill your financial needs

There are different kinds of insurance policies but the choice is yours. You can also go for the insurance policies that are coupled with investments. Some of the major insurance policies that people usually choose:

Term Policies: This type of life insurance policy provides coverage for a certain period, or a specified "term" of years. For instance, if the insured person dies within the period specified in the policy then the death benefit will be paid to the beneficiaries. It is less expensive when compared to other permanent policies, as it has no cash value.

ULIPs: A Unit Linked Insurance Plan is a product offered by insurance companies that is different from other insurance policies. It gives investors the benefits of both insurance and investment that too under a single integrated plan. The investments done under ULIPs are subject to risks associated with the capital markets.

Endowment policies: This policy not only makes provisions for financial security of the family in event of policyholder’s early death but also assures a lump sum at a desired age. The best part of this policy is the handsome amount that can be reinvested to provide an annuity during the remainder of policyholder’s life.

Money-back policy: The money-back policy is one of the popular insurance policies in India. It provides life coverage during the term of the policy with the maturity benefits that are paid in installments by way of survival benefits in every 5 years. In case of death of the policy holder within the specific period as provided in the policy term, the insurance company will give the full amount assured without any deductions.

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