How to choose the right life insurance contract?

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NEW DELHI: The coronavirus pandemic has exposed human vulnerabilities, increasing the need for life insurance and its benefits.

In addition to term insurance and life insurance, several other insurance policies offer financial security, depending on an individual’s needs and financial situation.

Indraneel Chatterjee, co-founder of RenewBuy Insurance, said: “There are several types of life insurance policies provided by insurance companies to their clients. For example, the policies are endowment policy, reimbursement policy, unit linked insurance plan (Ulips), child insurance policy, group life insurance, pension plans, etc. .

Today, a majority of customers prefer insurance to be a necessary protection against the unexpected.

“There has been a noticeable change in the perception of life insurance clients as a risk cover rather than an investment product. Financial anxiety was also evident in these unprecedented times, ”said Parag Raja, Managing Director and CEO of Bharti AXA Life.

“All of this has led to a significant increase in online insurance sales and much higher levels of personalization in terms of customer experience and value proposition,” he added.

How to choose the right policy?

It always pays to start young and plan your investments according to your financial goals.

“It is very important to assess a person’s insurance needs before choosing the policy. To do this, it is first necessary to define goals, needs and expectations according to the requirements of the family and, accordingly, to set aside money for them. It is also important to compare the claims settlement ratio of different companies in order to choose the best one for you and your family. Reassessing insurance needs from time to time is also important to protect the family in an emergency, ”Chatterjee explained.

“It pays to invest in both life insurance and term insurance, as the former provides return on your investment as well as life protection, while the latter secures your financial future. of your dependents with a nominal premium, ”Raja added.

It is always better to take expert advice.

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