Here’s how you can customise your life insurance plan –
1. Choice of sum assured
The sum assured is the coverage amount of your life insurance policy. Based on your coverage needs, you can choose a sum assured that offers optimal financial protection and would be sufficient to meet your family’s financial needs in your absence.
Choosing an optimal sum assured would ensure that you create a corpus needed for fulfilling your financial goals.
2. Choice of plan
There are different types of life insurance plans. You can choose a plan based on your financial needs. For instance –
- If you are looking for financial protection for your family in your absence, you can choose term insurance plans
- For planning a corpus for your financial goals, you can choose savings or investment-oriented life insurance plans like endowment, money back policy, or ULIPs
- There are also child insurance plans that help in creating a corpus for your child’s future needs, like education , marriage etc.
- You can choose annuity plans to plan for your retirement years
3. Choice of policy tenure
Life insurance plans also offer a range of policy tenures to choose from. This helps you choose a tenure that aligns with your financial goals.
4. Choice of premium details
You can choose the premium payment tenure and premium payment frequency depending on your budget and affordability.
In the case of ULIPs, there is a minimum and a maximum premium amount that the plan might mention. You can choose the premium that you want to pay within this limit when you buy the policy. For instance, say a ULIP requires a minimum premium of ₹12,000 annually and there’s no maximum limit. Depending on your financial goals, you can choose to pay an amount of ₹12,000 or higher when buying the policy. You can use investment calculators to find out the premium that you should pay to create the corpus that you desire.
5. Choice of optional riders
Optional riders are offered with many life insurance plans that help in enhancing the scope of the policy at an additional nominal premium. You can assess and choose suitable riders for an all-round protection.
6. Choice of benefit payouts
Under some life insurance plans you have the flexibility of choosing how the policy benefits should be paid – in a lump sum, in instalments or in a combination of both. Depending on your needs, you can choose the mode of benefit payouts to get the funds when needed.
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