Since past few years, the insurance sector has been continuously growing. At every stage of our life, we often need something that will take care of our beloved family in terms of financial protection. Uncertainties don’t hit with prior announcements. In case of any unfortunate event, life insurance policies help our family sustaining their lifestyle and keeping any financial crisis away from their life. But nowadays, an abundance of life insurance plans has raised a question- which life insurance policy to choose? Following are four factors to compare life insurance policies.
Life Insurance Policy Type
To start with, the fundamental thing you should consider is the type of the life insurance policy. Plenty of life insurance policies are available in the market from which you can choose the best suitable for your needs. The types can be enlisted as Term Life Insurance, Whole Life Insurance, Endowment Plans, Unit Linked Insurance Plans, Money Back Plans, Pension Plans, and so on. Each type of life insurance has different advantages.
Tenure of the Life Insurance
The suitable policy tenure is always different for each of the life insurance plans. Money Back and Term Life Insurance can be availed at the lowest tenure, i.e., five years, and can be chosen up to maximum 25 to 30 years. Whole life insurance has a tenure of 100 years considering the general life expectancy. Likewise, the tenures are designed.
Benefits of Life Insurance Policy
A life insurance policy offers several advantages to the policyholder which can be stated as follows-
- Death Benefits: These benefits are paid out to the beneficiaries on the demise of the policyholder during the tenure.
- Maturity Benefits: If the insured person survives the tenure, the maturity benefits are paid out to the policyholder, as decided at the inception of the policy.
- Other Different Benefits: Several other bonuses are also associated with some policies such as investment accumulated bonuses, tax benefits, regular monetary interests etc.
Premium Amount of the Life Insurance
Premium amount is equally significant while choosing life insurance. Term life insurance can be availed at lowest premiums. On the other hand, cash value policies and whole life insurance come at greater premiums as they offer maturity/survival benefits and bonuses. Thus, you also need to consider the affordability of the premium amount.
To conclude, before choosing any life insurance policy, compare several plans based on the four factors enlisted above. Opt for a wise plan and stay stress-free!