Buying a Life Insurance Policy is a challenge on its own. You need to understand your requirements and make your insurance company or agent understand the same to get the best of the deals. Ask as many questions as you can ask to clear your doubts and understand the policy better. Do not shy away from asking questions even if they are silly or embarrassing.
What is Life Insurance?
It is a contract between an insurance company and policy holder where the insurance company assures to pay an assured sum of money to the nominated beneficiary in case of sudden demise of policy holder during the term of the policy. In exchange, the policy holder pays premium either on lump sum basis or regularly. Some conditions like critical illness or terminal illness and others may affect the payment of benefit.
Questions You Should Not Be Afraid to Ask Your Agent-
- “Am I too overweight for a Life Insurance Policy?”
When one applies for a policy, they have to give a medical examination that checks their blood group, height, and weight. If you are on a heavier side or a little overweight, then you might be charged a higher premium, but you will be covered in case of an emergency.
- “Am I too young for a Life Insurance Policy?”
The early you start, the better!! Skip the misconception that you do not need Insurance if you are in your early 20s. An unfortunate accident can put your family in financial risk. The younger you are, the cheaper Life Insurance premiums will be offered to you.
It is better to understand the Life Insurance documents carefully before buying them. Once you cross retirement age, it will be difficult for you to find insurance cover, plus the premiums get expensive too.
- “I smoke/ I have an alcohol problem/ I am bipolar. Will this become public knowledge when I apply for a Life Insurance Policy?”
Insurance agents cannot expose personal details of a customer, as making any of your detail in public can put them in trouble. Reveal your accurate medical history while buying a Life Insurance Policy. Your application can be denied if you provide false information on your application.
To buy a Life Insurance policy, you need to share the intimate details of your life with the agent.
Things to Consider Before Buying a Life Insurance Policy-
There are various life insurance policies available in the market, you need to find out the one that suits the best to your needs. Here are few points to consider before buying a life insurance policy.
- Why you need a Life Insurance Policy?
Every Life Insurance policy offers different cover-terms and benefits. Understand why you need the policy and at what stage of life you need the policy, this will help you pick the right policy. You can also avail tax benefits on term life insurance policies according to section 80C of the Income Tax Act.
- Compare policies-
Talk to your agent about the policies. There are different types of insurance plans from which you can easily choose if guided properly. Understand the pros and cons of each and every policy carefully and deal with the complexities.
- Premium Payment-
You need to understand how much you will have to pay as premium. You should consider your funds and budget to make sure if the plan is affordable. Think if the premium increases, would you be able to handle the payments.
Read all the documents of your Insurance Policy carefully. Read all the clauses, like how much the benefits will be added and the effect of interest rate on the premium paid.
- Renewing the Policy-
Renew your policy at regular intervals and understand the market condition and their effect on your Insurance Policy. You can also switch insurance providers if you are not happy with the current one.
Life Insurance Plans in India
Here are the Life Insurance Plans that you can consider from and discuss with your insurance agent to get the best suitable plan.
|Life Insurance Plans||Entry Age (Min/Max)||Policy Term (Min/Max)||Sum Assured (Min/Max)|
|Aviva I-Life Plan||18/55 years||10/35 years||25 Lacs/NA|
|Bajaj AllianziSecure||18/70 years||10/30 years||20 Lacs/NA|
|Bharti AXA eProtect Term Plan||18/75 years||10/30 years||25 Lacs/NA|
|HDFC Click2Protect Plus||18 /65 years||10/30 years||10 Lacs/10 Crores|
|HDFC Life Sanchay||30/45 years||15/25 years||1,05,673/NA|
|ICICI Pru iProtect||20/75 years||10/30 years||3 Lacs/NA|
|Kotak Life Preferred e-Term||18/75 years||10/40 years||25 Lacs/NA|
|LIC AmulyaJeevan||18/60 years||5/35 years||25 Lacs/NA|
|LIC New JeevanAnand||18/50 years||15/50 years||1 Lac/NA|
|LIC Term Plan||18/75 years||10/35 years||50 Lacs/NA|
|Max Life Online Term Plan||18/70 years||10/35 years||25 Lacs/100 Crores|
|SBI ShubhNivesh Plan||18/60 years||5/30 years||75000/NA|
Take your time to judge your insurance agent and ask as many questions as you can to know more about the policy. Ask him questions that are bothering you because a good agent will always take his time to break the doubt down and simplify the policy for you before selling you the policy.