When you have a family to support, securing them financially is one of the most important financial decisions. Irrespective of how much one earns, saving money for rainy days and investing towards the financial stability of loved ones is always a top priority for every individual.

Be it the sole breadwinner of a family or an earning member who has financial dependents, purchasing an insurance policy would be an ideal way to start planning finances. Buying a life insurance policy is one of the best ways to secure your family’s financial future. Besides, there are lots of benefits which you should not overlook, especially if you are young.

Moreover, in this modern age, the life insurance sector has drastically changed to meet the needs of its customers. So, if you face a dilemma in choosing the right cover, these tips can be handy.

1. Analyze Your Requirement Carefully

Analyzing financial instruments, i.e., your family’s assets and income, is essential before deciding on the coverage needed from an insurance policy. You have to consider some factors such as:

• Number of dependents
• Young children whose education should be taken care of
• Any impending marriage in the family
• Any other family member is sharing financial responsibilities.
• Present income
• An assumption on your salary hike
• Assets
• Liabilities
• Lifestyle

2. Costs Involved

It would be best to consider the cost factor when you have decided to buy a life insurance cover. Always compare similar plans before determining the best life insurance policy in India for yourself. Nowadays, there are many cost-effective plans available. Hence, the premium fits your budget.

3. Claim Settlement Ratio

The primary purpose that the best life insurance policy in India gives is the cover it offers, which should be sufficient for your loved ones to not face any financial hassles even in your absence. For this reason, you must check the claim settlement ratio that is expressed in the terms. Never get influenced by others as everyone has different needs.

4. Do Not Add Unnecessary Riders

Life insurance policies come with an additional rider facility. Therefore, adding riders can help to increase the weightage for your policy. However, they add a specific amount to the premium. Hence, it is always advisable to add a rider only if you need it, not to strain your pocket.

5. Reassessing The Insurance Needs

 When you are investing and preparing financial plans, the thumb rule is to assess your investments periodically. Similarly, you should constantly reassess your policy needs from time to time. There may be some changes like getting married, moving to a different city, or increasing your salary. Reassessing your needs is crucial in protecting your family.

6. Buying A Policy Online

 When you have to choose a life insurance plan, you must determine whether to buy it online or offline. When you go for the best life insurance policy in India through an online portal, you need not contact an agent. You can assess your requirements with the help of the calculator available. Purchasing will be accessible in this mode.

There is a choice to compare the benefits of various types of life insurance policies. Moreover, you can avoid intermediary fees making the premium more affordable. You will also get multiple payment options.

7. Consider Inflation

Inflation increases the price of products making the value of the rupee fall. Hence, the cover you chose today may not be enough after ten years.

For example, if you take inflation as just 5%, the value of a Rs 60 lakh premium will fall to Rs 38 lakh after ten years. This is because life insurance companies keep hiking premiums by 5% up to 10% every year to cope with this problem. Thus, the periodic increase in the cover can help you take care of the rise in inflation.

8. Tenure Of An Insurance Policy

 The tenure of a life insurance policy is also crucial, as its cover. You must see that tenure covers at least until the age you can work. Until a few years ago, 60 years was the retirement age. Nowadays people are working beyond 60.

Moreover, most people have late marriages and children at an even higher age. So, it is for sure that a person needs cover till at least their 65 years. But ideally speaking, a person should consider his retirement age to decide the policy tenure. Therefore, consider the difference between age at the time of retirement and current age as policy tenure, before investing in the best life insurance policy in India.

9. Income Tax Benefits Of Life Insurance Policy

 Various insurance policies offer different kinds of tax exemptions. Under section 80C in the 1961’s Income Tax rule, policyholders get an exemption for the premium. However, the claim amount should not exceed Rs. 1,50,000. Section 10(10D) of the income tax gives an exception on the claim and maturity received.

It is of utmost importance for every individual to choose the right life insurance plan that will ensure your family’s financial security in the future. So take this step to look after your loved ones and buy the best life insurance policy in India to gift your loved ones a worry-free future.