Buying Life Insurance Cover? Do Use These Tips

Jun 06, 2018 | 5 months ago | Read Time: 2 minutes | By iKnowledge Team

Keeping your loved ones secure is always a priority. Hence, a life insurance policy is probably at the top of your list. Needless to say, the policy must be strong and dependable.

Choosing the right life insurance policy can make all the difference. The thumb rule is to invest in a cover that is 10 times your annual income. However, the multitude of options available in the market can leave you confused. So, here are a few tips to help you get started:

1. Compare and choose the best policy

You always buy the best there is, right? So, why should choosing a policy be any different? There are many insurance websites online that can help you compare policies offered by different insurers. All you need to do is to key in your requirement. This will help you zero in on a policy that suits you to the tee.

2. Keep your financial goals in mind

When choosing a policy, keep your long-term financial goals in mind.

For instance, if you need returns on the policy, term return of premium (TROP) plans could be an option for you. If you want to use the policy as an investment tool, ULIPs have the ability to help you reach your financial goals. But if you only want financial protection for your loved ones, you can buy a term insurance.

3. Check your insurer’s reputation

A good insurer is the key to a good insurance policy. Your life insurance company must have a good reputation. Information on this is easily accessible online. The insurer you pick must have positive feedback on customer support. Also, make sure that you check the claim settlement ratio before you finalise an insurer. Claim settlement ratio indicates the insurer’s record of paying claim amounts to the family following death of policyholders.

4. Make sure you get the premium amount right

The premium amount you decide can have a major impact in a time of crisis. A high premium amount will ensure your family’s lifestyle is unhindered in case of an untimely demise.

5. Read the policy thoroughly

Make sure you are well acquainted with the policy and its benefits. If you find it difficult to understand, consult experts who can explain the jargons to you. Fill in your proposal form with care to avoid rejection of claims in the future.

6. Choose the right agent

Your agent is your link to the insurer if you are not buying an insurance policy online. They should be able to point out the policies that work for you. The right agent must also be equipped with the right knowledge to help you with your queries.  

7. Use the ‘free look’ period of the policy:

Before making a commitment to paying the premium for the policy’s term, use the ‘free look’ period. This will help you understand how the policy works.           

To sum up, don’t buy a life cover in haste. Like all things in life, patience rewards you in the long run. So, do your due diligence to ensure the insurance policy is a friend in need.

Advt. no.: IA/MAY 2018/4017


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