Tip to Buy Life Insurance Policy in India

Life Insurances 173 views

While buying any financial product you need to be very conscious and must understand your needs first. You should be well aware of why you want to buy that particular financial product or insurance policy? Are you buying that to product to grow your money? Do you want to buy an insurance policy to save income tax? The reason of buying a product could be anything, but you should always understand the difference and importance of that product. The main issue one faces while buying any policy, which product is the best for him/her? What is the best way to buy any policy? What are the parameters to keep in mind while buying any policy? Buy any policy or term plan, which suits you most and helps in meeting your financial goal. Here are some important tips to keep in mind while buying an insurance policy.

  • Why do you need an insurance?: Always buy an insurance with right motive and understand your purpose first. If you are not clear about your objective of buying the policy then don't jump into the decision of buying one. If you don't have any dependent then it's better not to buy any policy. But, if you do have dependents in your family and they can't sustain in your absence, then it is always recommended to buy a policy for better future security.

 

  • For term insurance policy: The main objective of any insurance policy is to secure the life of your loved ones and family members in your absence. Yes, that is the only reason why you should buy insurance. Term insurance is the best option to fulfill this need.
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  • Calculate accurately the sum assured: It is really an important thing to calculate the sum assured while buying the policy. It is necessary to understand that you should choose the right kind of policy. You need to more cautious while buying the policy and assuring the sum. If you will choose the wrong assured some it will not solve your purpose of buying the policy. Generally, you should buy a policy  or term plan that will offer you 8-10 times more amount than your actual annual income.

 

  • Choose the best insurer: There are many companies and financial firms which are selling insurance policies, but you should buy your policy from the most trusted partner. Always buy your policy from any of the insurance seller who is trustworthy. You can also take the help of your family or friends to find out a good insurer. You can read the review of various insurance companies and their procedure of settling the claims, it can help you in making the right kind of decision.

 

  • Read the product brochure carefully: It is always printed on all financial products that read all the documents carefully. You should read all the terms and conditions and other things written in the brochure carefully. It is important that you are well aware of the procedure of claim and other terms related to your claim and maturity of the policy.

 

  • Know the reasons for rejection:While buying the policy ask your insurance agent about the terms and conditions related to rejection of claim. All the companies have certain terms and conditions to disburse the claim, in case you don't fall into that category, your claim application will be rejected. Therefore, before buying the policy ask your insurer more about the reasons of rejection of insurance claim.
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  •  Ask as many questions as you want: Ask as many questions as you want before buying the policy. It is the best way to clear your doubts and know more about the policy. It will help you in building the understanding about the policy. These insurance agents don't tell you about all terms and conditions and other rules about the policy at the time of selling it. So, it is necessary to buy a policy.  Once you build an understanding and very sure that this is right policy for you and your family then only make your buying decision.

 

  • Buy a policy at an early age: If you buy a policy at an early age you will be required to pay less amount as compared to when you buy a policy after 40s or 50s. For that insurance company you are a product and if you buy a policy at old age, so the chance of your getting old, sick and death are higher as compared to the person in his 30s. So, buy a policy at an early age to pay lower amount on your policy.

 

  • Consult a planner or advisor: If you have not made up your mind and not sure about the different terms and benefits of various policies, so you can consult a policy advisor or planner to help you out. These people are experts of their fields and they can tell you everything about the terms, assured sum and other aspects related to the policy to help in making your decision.
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  • Buy online to reduce cost: Buying any policy online is simple. You can read all the terms there and buy a policy within a minute. If you buy a policy online you need to pay the reduced cost as compared to buying it from any agent. Most of the companies offer you all the policies online, so you can read the terms there and buy a policy within a minute.