What is a Life Insurance Policy?
A life insurance policy is a contract between the policyholder and insurance providing company wherein the policyholder pays a premium, and in return, the insurance company provides the policyholder with a financial safety net.
A few of the benefits of a life insurance policy are –
- A life insurance policy provides the policyholder and his family with financial security in the hard times of the rising cost of inflation rates.
- It also provides lump-sum tax deduction benefits under the Income Tax Act, 1961.
- The policyholder can choose from numerous additional rider options to avail of additional benefits and larger cover.
- A life insurance policy provides a lump sum amount of death benefits to the family in case of an untimely demise of the policyholder.
Let us now look at a few steps on how you can compare life insurance policies and choose the best one for yourself and your family.
1. Know Yours and Your Family’s Financial Requirements
When you compare life insurance policies, make sure that you are aware of your and your family’s future financial requirements. With this, you will know the sum assured you are looking for and will be able to choose a life insurance policy that fulfils your and your family’s financial requirements.
2. Choose a Life Insurance Policy That Provides Waiver of Premium
Another thing to keep in mind when you compare life insurance policies is whether the policy provides you with a waiver of premium. Opting for the waiver of the premium feature will ensure that in case the policyholder is not there, then the financial burden of paying the premiums will not fall upon the family.
3. Opt for Additional Rider Benefits
Opting for additional rider benefits will provide the policyholder with additional benefits and a larger cover under one life insurance policy. The policyholder can choose from numerous additional rider benefits, such as waiver of premium rider benefits, accidental death rider benefit, critical illness rider benefit, etc.
4. Check the Insurance Company’s Claim Settlement Ratio
While you compare life insurance policies, make sure that you check the claim settlement ratio of the insurance providing company. Claim settlement ratio basically means the number of claims settled per 100 claims received by the company. Bharti AXA’s claim settlement ratio is 99.09%.
Your Way Forward
You now know what a life insurance policy is, its benefits and the steps to keep in mind when you compare life insurance policies. Investing in a life insurance policy in today’s time and age is crucial for financial security in future.
Bharti AXA is a top-rated insurance providing company and is trusted by people all across the country. Our claim settlement ratio is one of the best in the country, which shows that we are committed to our customers and ensure that they have a secure and seamless future. We provide the best life insurance policies for you to invest in.
For more information on life insurance policies in India, get in touch with us today.