Published: 05th Sep 2024
By: Value Research
The first step is to determine the amount of coverage you require. This depends on factors such as whether you own any property, whether you have any liabilities, number of children, and so on. Typically, your term insurance coverage should be 10 times your annual income.
Claim settlement ratio shows the number of cases where the insurance company paid the sum assured out of the total number of claims received. The higher the claim settlement ratio, the better.
The purpose of buying life insurance is to provide financial security. If you buy investment-linked insurance plans (ULIPs), not only do you risk getting poor returns, but the coverage is also inadequate.
Under Section 80C of the Income Tax Act, you can claim premiums of your term insurance plan as deductions. Further, if you opt for any riders in addition to your coverage, the deductions for the same can also help you save on tax outgo.
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