Factors to consider before buying an insurance plan
Posted on: 19/Mar/2018 4:26:01 PM
An insurance coverage is intended to protect the investor from the adverse financial situation in future.
It is really essential that each individual must take life insurance cover. In this front, it is also better to be aware of the extensive details about the insurance coverage, policies, etc. Here are a few important aspects to be considered while taking life insurance cover:
The main intention – There should be a clear idea about the type of benefit to be availed while taking the insurance cover. It is better to address some specific needs while taking the insurance cover. This will help till the insurance policy cover period. Depending on the time of taking the insurance cover, whether the policy features take care of the main requirements intended. With this approach, one can avoid later worries of having taken the wrong insurance policy.
The analysis required – Read all the leaflets pertaining to the insurance policy being taken. Get a complete idea on the various features. Though the insurance agent may also provide all the details, it is still better to do this exercise on one`s own. If required, visit the related websites on the internet and obtain and go through all the features/details. One may have a discussion with the agent as well. Please never be in a hurry while selecting the right insurance policy.
Focus on the forms – Most of the investors do have the habit of first signing on the dotted lines as shown by the insurance agent and then only to read about the details in the form. However, it is wiser to read the form, understand, and then only start filling up and then sign. This will ensure that you are aware of all the main features of the insurance policy.
Name of the policy – An insurance company issues a variety of insurance coverage policies with different names. There are policies known as term plan, ULIPs, and other regular items. Each will have some small differences when compared with the others. For example, when taking a housing loan, It is not wise to take an endowment policy. Only the policy for the loan is the best. So, it is better to check and know the name and the features of the selected insurance policy.
Wait for the call from the company/its agent – Most of the insurance companies prefer to confirm that the policyholder understands the nature and the features of the type of policy chosen. This is required in order to get an idea about the conditions and benefits of the insurance policy taken. So, it is better to wait for the call from the insurance agent. Please keep it in mind that the insurance policy is being taken with the view on a long-term basis.
