What are the characteristics of a best life insurance plan?

A life insurance policy is a contract between the insured and insurer, whereby an insurer is bound to pay a certain amount of money after completing a specific period or death of the policyholder. Here, an individual is protected financially by an insurer in exchange for the premium paid over a period. The payment paid by the insured to the insurer is known as premium. If the insurance holder is deceased amidst the policy tenure, the insurer must pay a lump sum of money to the insured's nominee. This lump sum amount paid to the insured on his/her death is the sum assured.

What are some of the  best life insurance policies available in India?

1.     ULIPs or Unit Linked insurance policies

2.     Endowment policy

3.     Term insurance policy

4.     Pension or annuity plans

5.     whole life policy

6.     Money back policy

How much does an average life insurance premium cost per month?

The expenses directed towards a life insurance policy can depend on the nature of your purchased policy. Generally, term insurance plans are cheaper than whole insurance plans. However, the term insurance plans come with only death benefits and do not provide returns or profits. On the contrary, Unit linked insurance plans, and traditional plans are relatively expensive as they come with myriad benefits. The cost of the insurance premium can vary as per the sum assured. For example, if you're paying a higher premium, the sum assured is more likely to go high and vice versa.

What are the factors that can impact the effectiveness of a best life insurance plan?

The best life insurance plan can be determined by the policy's effectiveness and the nature of the coverage it can offer. Besides, it can depend on its benefits and the claim settlement ratio provided by the insurer.

On the other hand, if you want to protect your property against damages, you can opt for the home insurance policy .