Things to check before buying a life insurance policy

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Family Care And Protection

Life comes with uncertainty. This pandemic has made us realize this. Not only it has made us realize the importance of our own lives, but also it has given us a strong sense of how valuable our family’s life.

The future is uncertain. And the uncertainty provides an important reason to plan for the future. Insurance helps your family to feel secure in times of need. So, insurance is a necessity. And in recent times, we have understood that too. But oftentimes, we get confused while buying the life insurance policy.

Following are the factors that you need to check before buying a health insurance policy:

Assess the insurance needs:

What is your contribution to the family’s income? How many members are dependent on you? In case of your premature death, how they will repay the debt amount (if you have any) etc. questions you need to ask yourself. The answers will help you decide the coverage that you want for your family.

Compare different policies:

Generally, life insurance provides two types of policies: Term insurance and savings-cum insurance plan. Both plans have different purposes. In the case of term insurance, the sum assured is relatively higher. Savings-cum insurance plan provides maturity benefits. If you want a certain amount of money for some specific purpose in the future e.g. Education, then this scheme can help you with that.

Choose an affordable cover:

In the case of Term insurance, the amount of premium is relatively lower. If your family needs a higher amount of coverage, then this plan may be suitable for you. In the case of savings-cum insurance plan, the premium amount will be higher. If you can afford a higher premium amount and want guaranteed maturity benefits for your money, then it may be a good option for you.

Claim settlement history:

Before approving your request for insurance, companies do check your insurability. Just like that, you must check the claim settlement history of your insurance company before buying it. It does not take much time to do research online. IRDAI also provides this information on its website.

Life insurance riders:

While buying an insurance policy, an additional coverage facility is also provided by the companies in the form of riders. Critical illness, income benefits, etc. for all these purposes, riders are provided. You can select the rider according to your need. You will have to pay an extra premium for it.

Tenure of the policy:

Longer tenure means a longer period for paying premiums. So, while choosing the policy, you have to keep that in mind.

Abide by the rule of disclosing true and complete information:

You have to mention all the complete and true information in the form. It is called as “principle of utmost good faith”. Your insurance policy can be cancelled in case of any fact is omitted, hidden, or manipulated.

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