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LIFE INSURANCE TIPS AND ADVICE

life insurance tips and advice

Suggestion before taking Life Insurance

When you buy a life insurance policy, you have to be take into consideration the below points

  • Verify whether the company is registered with IRDA
  • You can buy the policy either online or through bank or from an agent or directly from the company. You have to be cautious while buying from agent or direct staff. You have to ask for a company ID card or IRDA license copy.
  • If you buy from a agent, then be sure that you choose a fulltime agent whose main business is selling and servicing for life insurance companies
  • You have to read and verify all the policy details from the policy brochure/prospectus.
  • Understand the terms and conditions of the policy.
  • Verify the Nominee name and all name related details in the policy document. In case if you find any mistakes, make sure you are rectifying it from the company at the earliest.

Dos and Don’ts for Life Insurance

Life Insurance: Some Dos and Don’ts

Life insurance is a process of transferring the risk to the insurance company and safeguard your family members from unseen circumstances. Since in most of the cases the insurance claims are received after our life time, the main people who are facing the claim desk is your family members and your nominee. Since it is a matter of importance, you have to educate your dependents on how to claim the insurance claims in your absence.

Knowing the importance on the need for life insurance, I am providing the Do’s and Don’ts for buying life insurance

Dos

  • Find a best financial planning advisor who is working as a full time agent with a life insurance company.
  • Understand your primary needs and major requirements to decide on what plan you have to buy.  Analyse which payment frequency (Single or Annual, Half yearly, Quarterly or Monthly) will be suiting you
  • Fill the proposal form very carefully and personally
    Fill it completely and truthfully, Remember you are responsible for its contents Make sure that the information you give cannot be disputed during a claim Ensure you fill Nomination details If the form is in one language and you are answering the questions in a different language Ensure the questions are explained correctly to you and That you have understood them completely Remember you have to give a declaration to this effect in the proposal form
  • Keep a copy of the completed proposal form you sign and any declarations and terms agreed upon mutually for your records
  • If you are buying Unit Linked Insurance Policies (ULIPs) ask specific questions about:
    • Various charges
    • Fund options
    • Switching of funds
    • Benefits if you
      • Discontinue the policy
      • Surrender the policy
      • Make a partial withdrawal of funds

Don’ts:

  • Do not leave any column blank in the proposal form
  • Do not let anyone else fill it up
  • Do not conceal or misstate any facts as this could lead to disputes at the time of a claim
  • Do not miss or delay your premium payment

 

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