Evaluate your existing Life Insurance Cover and get proper Family Protection with the lowest premium, is the most important part of planning. This whole process is known as Risk Management. Unfortunately, this is one of the most neglected ones also. Insurance is not an instrument for a status symbol, but insurance is a tool to transfer the risk to the insurer by way of contract. The first part of risk management is the identification of actual risk an individual is exposed to.
What is Life insurance?
The risk of financial loss because of loss of life which cannot be retained by the family is transferred to Life Insurance Company. Which takes a premium in advance and accepts the Sum Assured or Risk Cover on the individual up to the limit for which premium has been paid.
How does Life Insurance Policy work?
By buying an insurance policy an individual becomes the part of a community of policyholders. Policyholders unknowingly form a pool of large fund to protect a few families from the loss of income of the life assured (whose life is covered).
Life Insurance buying Tips – How to buy Life Insurance Policy?
Identify and know the actual amount of risk (sum assured) you have in your life.
This is the amount of risk your family needs to maintain the same standard of living and to spend on the accomplishments of goals in your absence.
Identify the period (term of policy) for which family is actually at risk.
If you are 35 and your family doesn’t have enough resources to meet all the expenses for living and goals, you need life cover. But at the age of 50 if you have accumulated more than required resources, do you still require Life Insurance?
Know the type of plan to be taken.
All the policies are good and all the policies are bad, only a few policies can be good for your situation. Before buying the Insurance Plan you should check with your planner for the most suitable plan for your situation.
Compare the Claim settlement ratio of Insurance Company.
Before buying your suitable product you should know the settlement ratio or alternatively non-settlement ratio known as Repudiation Ratio. It is for sure that you are not willing to take cover just for emotional satisfaction. The family is the end beneficiary of Life Insurance product.
Compare the Life Insurance Premium.
After checking above-mentioned points you should compare the plans of good companies which have good claim settlement ratio after all insurance premium is an expense.
Fill the form in your own handwriting.
This is one of the most important points as most of the people only sign the Proposal Form. Although unknowingly you sign a declaration stating that you have filled the form in your handwriting. Neglecting this can cause your family irreparable loss.
Disclose all the risks you are exposed to and the existing policies you have.
As we already discussed, the family is the end beneficiary of the policy. So you are buying a cover for them, knowingly or unknowingly non-disclosure of any risk or existing cover may give Insurance Company a valid reason to deny the claim. So disclose everything about your past and present health.
Types of Insurance Plans in India
Term Life Insurance Plan
This is the purest form of Insurance. This is the cheapest insurance plan you can buy. This is a plain vanilla product from insurers and doesn’t get attention from people. This plan can be taken from a number of insurance companies. These plans can be of these types in general.
Online Term Plan without return of premium
Offline Term Plan without return of premium
Offline Term Plan with return of Premium
Offline Loan Cover Term Plan
Traditional Life Insurance Plan
Whole Life Plan
Money Back Plan
Unit Linked Insurance Plan
ULIP Plan is an Insurance product which provide insurance cover as well as the option of investment. A little part of premium goes to insurance of policyholder and remaining part invest in stocks, bonds and mutual funds.
List of Life Insurance Companies in India
Aegon Religare Life Insurance Co. Ltd.
Aviva Life Insurance Co. India Ltd.
Bajaj Allianz Life Insurance Co. Ltd.
Bharti AXA Life Insurance Co. Ltd.
Birla Sun Life Insurance Co. Ltd.
Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
DLF Pramerica Life Insurance Co. Ltd.
Edelweiss Tokio Life Insurance Co. Ltd.
Future Generali India Life Insurance Co. Ltd.
HDFC Standard Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
IDBI Federal Life Insurance Co. Ltd.
India First Life Insurance Co. Ltd.
ING Vysya Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd.
Life Insurance Corporation of India – LIC
Max Life Insurance Co. Ltd.
PNB MetLife India Insurance Co.Ltd.
Reliance Life Insurance Co. Ltd.
Sahara India Life Insurance Co. Ltd.
SBI Life Insurance Co. Ltd.
Shriram Life Insurance Co. Ltd.
Star Union Dai-Ichi Life Insurance Co. Ltd.
Tata AIA Life Insurance Co. Ltd.