Want the best 'Life Insurance' policy for your family? Here are 7 points to note before you pay

Here is why you need life insurance and how you should select the policy.

Apart from sustaining yourself presently, being financially secure is to also secure your family for days you might not there to provide for them. Here Life Insurance plays a huge role in that and will also help in your investment profile. Here are a few tips for you to pay in a life insurance.

Know what you want
Your goal needs to be set. It can be anything ranging from securing your family to your child’s education to buying a dream house. Accordingly, you need to choose from term life insurance to unit life insurance. You can also select a retirement plan to help you post-retirement.

Know what your coverage should be
Most people should select coverage at least ten or fifteen times their annual income. However, this can be more if you already have some prior financial commitments or arrange funds for other purposes.

Select the best policy with optimum premium
Compare multiple plans based on your financial goals before opting for one. See the one giving maximum coverage at an optimum premium and decent-paying terms.

Choose the correct term
Ideally, it should be till the time you are earning. So, subtract your present age from the time you want to stop working, and that should be the term for your policy.

Invest early
The earlier you invest, the lower your premium will be. Thus it is best if you buy your insurance policy as soon as you start working. Start with a basic plan and then continuously keep adding riders.

Choose a plan with a broader coverage
Ensure your plan covers a wide range of facilities as you never know if medical emergencies might affect your life. Assure you also have additions such as critical illness, accidental death, disability or terminal illness.