6 Ways To Choose The Right Term Life Insurance Policy For Your Family. High claim settlement ratio is one of the things to keep in mind before taking a life insurance policy, says Satishwar Balakrishnan, MD and CEO

A term insurance plan provides financial protection to your family, assuring them a regular income after you are gone. However, you can harness its true benefits only if you make an informed choice and choose a policy covering at least your earning years. In addition, you can get protection from critical illnesses.

The key to choosing the right life insurance policy is to ensure the continuation of income while meeting financial goals. It is, therefore, important to consider variables, including income sources, dependent family members, debt, and liabilities. You also need to evaluate whether you have adequate coverage.

Choose A Company That Has A High CSR: Taking critical illness cover is also very important. You could take at least 12 months of your income. If you can't afford that, take at least six months' income worth of cover. As one's life changes, our needs, and aspirations also change, so review your cover every four to five years. "Choose a company with a good track record for settling insurance claims. You can find that out by looking at the company's CSR, which is published every year by the Insurance Regulatory and Development Authority of India (IRDAI). The CSR of an insurance company indicates the number of claims a company has settled compared to the number of claims received. The higher the CSR, the better it is," says Satishwar Balakrishnan, MD and CEO, Aegon Life Insurance.