A life insurance is one of the most important financial products that a person purchases for himself/herself. It is the hedge one takes against life itself and helps an individual’s family come to terms with the loss of the individual. Hence, it is important that you select the right insurance plan for yourself.

Here are a few key factors that will help you select the right insurance product for you:

- Type of insurance plan: Most customers feel unit-linked insurance plan (ULIPs) is a very lucrative product, the money that you can save on relatively lower premiums under a term life insurance plan can be channelizes in a relatively more profitable investment avenue to help you earn higher returns.

- Eligibility: Choosing the insurance plan that’s best suited for you is advised. For example, if you suffer from a lifestyle disease, then you may not be eligible for cover with one insurance company. However, there may be another company which may consider you to be eligible for a similar policy but will charge you a slightly higher premium. Hence, you must check with as many companies as possible to see if you are eligible for a life insurance policy despite your medical condition. This is because some companies may be willing you offer the same insurance at a relatively lower cost than others.

- Affordability: Basic term plans are considered to be most affordable as the premiums associated with them are relatively low keeping in mind the coverage terms offered. However, other plans may be slightly expensive as higher the coverage and add-ons mean that even the premium payments will be considerably high.

- Sum assured: When you select a life insurance, the sum assured should be based on the amount of money you require to meet financial commitments in case you are in a condition where you can no longer earn a steady income. Although a high sum assured can work out to be expensive in terms of premium payments, a smaller one might not offer exclusive coverage.

- Premium amounts: You need to be able to afford your life insurance premiums as you have to pay this amount at regular intervals. Hence, you must select an amount only once you have taken into consideration all the present and future expenses (accounting for inflation). Do note that premiums shouldn’t cause a strain on your disposable income and savings.

- Features, exclusions, fine print: This is one of the most important tip I can share with you. You have to, at all costs, read through your insurance document carefully so that you clearly understand what is covered under the policy. The benefits and features, such as death benefits/critical illness rider/disability/loss of income, etc. must be understood so that you can make the most of your policy. Hence, go through the fine print and check what are the benefits of the policy and under what circumstances; You must also be aware of the exclusions, the premiums charged, additional fees and costs, terms and conditions, how the claim process works and everything else that is mentioned in the terms and conditions document of the life insurance policy.

- Insurance agent: Insurance agents work very closely with insurance companies and have all the information you require to help you pick the life insurance policy that best suits your requirements. Agents are also helpful in completing your paperwork and taking care of all the legal requirements so that you can avail an insurance policy by going through virtually no hassles. In fact, they are, for most people, the preferred method of purchasing a policy. Experts recommend that you use a qualified and licensed agent who can assess your requirements and suggest the right kind of policy for you.