The Insurance cover you should take
While buying an Insurance Plan, the first thing to be decided is the Policy Amount i.e. how much should be the Policy Worth. According to experts, the Policy Amount should be 12 times of your Annual Income, minus your Investment Assets, plus any Liabilities
Ideal Tenure of the Policy
The Ideal Tenure of the Policy should be your Retirement Age minus your Current Age. That means if you are 35 today and you wish to retire at 60, then the term of the Policy should be 60 – 35 = 25 Years
Prefer to buy Insurance Online
Insurance products are also sold online and that too much cheaper (sometimes at a discount of 30%) compared with the products sold through agents or brokers. Selling these Products over the Internet does away with the Agents Commission, thus bringing down the overall cost of the Policy.
Check the Add-ons before adding one
Add-ons with respect to Life Insurance Plans refers to Health/Mediclaim Insurance Plans that are offered alongside. Many Insurers have now started offering the benefits of both Life Insurance as well as Health/Mediclaim Insurance in the same Policy. Always check their individual Value before opting for the combined benefit plan.
It is always better to disclose everything to the best of your knowledge in the form provided, while buying Insurance Policy including your existing Health Conditions, Family History and all existing and proposed Insurance.
Take Medical Tests
It is always better to go for medical tests as this will reduce any chances of claims being denied, especially since you’ve disclosed all the facts. It is always better to pay additional premium for a small health problem rather than the family facing problems with the claim on the ground that the facts were not fully disclosed.
Review your Needs Regularly
Once you’ve bought a term insurance policy, you should always review it every 3 to 5 years. Over this period, your personal circumstances, income, assets and liabilities would have gone through certain changes. So it’s always good to review your requirements regularly.