Life Insurance Buying Guide For 2020

Life insurance is one of the most essential part of your financial wellbeing. DSIJ gives you the definite buying guide of life insurance for the year 2020.

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Choosing a life insurance plan has always been one of the most complex decisions that lead us to leave this work on the insurance advisor or the financial planner. However, most of the insurance advisors, if not all of them, sell only those policies that give them the maximum benefit without acknowledging your suitability. Therefore, it is better to do a bit of self-research before opting for any life insurance policies. This article will work as your guiding spirit in buying a suitable life insurance.

As of now, there exist around 24 life insurance companies, which make the task even more difficult for short listing any out of the many options available. In this article, we would try to find out which are the top three best term insurance plans in 2020. Before starting, it is important to understand what a ‘term life insurance’ is and why you should opt for it!

What is term life insurance?

It implies to a type of life insurance where in the case of death of the policyholder, during the policy period, the lump sum amount (sum assured) will be received by his/her nominee. However, if the policyholder survives the policy period, then he does not receive anything on maturity. Sad, right? However, this does have its own benefits.

Why buy term life insurance?

Most of you might think that, if the term insurance does not provide anything on maturity then, why opt for it over traditional insurance? To answer this, first we need to understand the basic concept of life insurance. Life insurance is nothing but covering the risk after the loss of life of the policyholder. Therefore, covering the risk of loss is much more important that getting something on maturity.