The moment you begin earning, financial planning becomes mandatory. One of the essential parts of not just financial planning but planning for life is a life insurance policy. Though its primary purpose is to protect your family from financial stress in your absence, it has many other benefits too.
A life insurance policy offers financial protection to your family in the event of your death. This could be in the form of a lump sum or a monthly payment. It could also offer financial support in the form of health expenses coverage, wealth creation, collateral for loans, tax benefits, etc. depending on the policy terms. There are different types of life insurance policies which offer different sets of benefits. The various types of life insurance policies include term insurance, endowment policies, whole life policies, money-back policies, and ULIPs.
The best life insurance policy for you will be one which caters to your and your family’s specific needs. If you are confused about how to select a life insurance policy, begin by drawing up a list of financial needs, and tick them off against each policy’s specific benefits. For example, if you are the only breadwinner of your family, a term plan would help on two counts- lower premium rates, and a higher Sum Assured upon death.
Be open to all kinds of information.
Even after you choose what seems like the best life insurance policy, your research doesn’t stop there.
A proposal form is a form that you fill while applying for a policy. It is used by the insurer to assess your risks. It is an integral part of the insurance contract.
Last but not the least, you should review your policy at regular intervals. This means considering the possibility of increasing your life cover at important points in life. To avail this benefit, you need to opt for a policy like the Canara HSBC Oriental Bank of Commerce iSelect Star Term Plan. It offers you the option to increase cover during marriage, childbirth, and purchase of a house. You can also flexibly choose for an increasing or a decreasing term. It also offers a plethora of benefit options like spouse coverage, multiple premium payment options and several payout options. It even offers an option of return of premium benefit in the event that you outlive the policy term. Keeping in mind all the dos and don’ts listed above, you can opt for the iSelect Star term plan to financially secure your family.