Do your homework and make an informed choice

TomorrowMakers ™

Do your homework and make an informed choice

16 March 2015
Always buy insurance from companies that have a healthy claim disbursal record and a proven consumer-focused approach.

Most life insurance plans are long term commitments and might have a significant impact on your short term and long term finances. Therefore it is important to choose a policy with care and ensure that it is chosen for the right reasons.

Life insurance is not just a tax saving tool or a money making mechanism, it is about protecting yourself and your family from unforeseen financial circumstances arising from the death or disability of a loved one. (Also see: Why should you avail life insurance)

Here are a few insights that will help you when investing in a life insurance policy:

  • Research before you buy
    Start by analyzing your current finances. Once you identify the gaps, research to zero-in on the type of policy, cover and insurance company that suits your requirements. Compare the features, benefits and clauses of the plans. You can search online for the ratings and reviews of the product and the company you are planning to engage with. You can also consult your financial planner for the same.
  • Buy insurance from the right place
    Always buy insurance from companies that have a healthy claim disbursal record and a proven consumer-focused approach. If you are buying your policy online, take your time to make an informed decision. If you are buying from an advisor, ensure that you get all the relevant details about your plan.
  • Read the policy document
    On receiving the policy document, read it thoroughly. Understand the clauses, terms and conditions, the inclusions and exclusions. If you have any questions, get them clarified from your advisor or the insurance company. Keep the policy document safe.
  • Ask Questions
    Throughout the process, ask as many questions as you like. It is your hard earned money, and you have all the rights to know where it is being invested and what you can get back.
  • Buy insurance you can afford
    Your insurance premium needs to be an amount that is well within your budget. At times, you might not be able to get the required cover with an endowment or a ULIP alone. You can always start with the premium you can afford and gradually build more cover as your investable income increases.
  • Be aware of your rights
    There are certain rights your life insurance policy grants you, like a free-look period and renewability. You can check the official IRDAI website on Consumer Education www.policyholder.gov.in to know more about these rights and make sure that you exercise them.

 

 
 

MOST VIEWED CONTENT

5 Mistakes you must avoid when buying a term plan

5 Mistakes you must avoid when buying a term plan

Buying a term insurance plan is an important decision that must be done carefully if you want to get the most out of it.

Do not make the same mistakes I did by ignoring term plans

Do not make the same mistakes I did by ignoring term plans

If you give any of the mention excuses, you might be inviting a trouble in yours and your loved one''''s life. Read and take a smart decision of buying a term plan to create a shield around you and your family

What makes buying life insurance online click?

What makes buying life insurance online click?

From buying mobile phones to placing orders for grocery items Indians are getting hooked on online shopping in a big way. Till a few years ago life insurance was mainly bought offline but now customers are also showing increasing interest in buying life covers online.

Term vs whole life insurance

Term vs whole life insurance

You’ve decided to provide financial security for your family and subscribe to a life insurance policy, but are stuck in the age-old debate – Term or Whole Life insurance?

Have you heard about Term Plans that payback?

Have you heard about Term Plans that payback?

These are the new-age term plans that, along with the usual benefits of a term plan, return all the premiums in case the policyholder survives the policy term.

Top 6 factors that affect how Life Insurance premium is calculated

Top 6 factors that affect how Life Insurance premium is calculated

Have you ever wondered why you are asked to pay lesser premium than your friend or family member? To end the confusion, we have prepared a list of factors that affect how life insurance premium is calculated.

Comparison of PPF and life insurance: Which comes first?

Comparison of PPF and life insurance: Which comes first?

Protection first, savings next is the best advice. Your planning should rest on two pillars, protection and saving.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER