Do’s and Don’ts for Life Insurance Buyers

Given below are some strategies what to do and what not to do before purchasing a plan.

* Do’s

- Invest some time and research thoroughly to save a good amount of money for the same coverage.
- Compare online policies and check the company’s image in the market by visiting online consumer forums.
- Buy a policy from an insurer that has a good claim ratio and is involved in fewer disputes.
- Read the policy documents carefully and understand the claim process and renewal process.
- Select a premium on a monthly, quarterly, or yearly basis and then zero in on a premium payment option based on your preference.
- Talk to family, friends, or financial advisors in case you seek recommendations regarding insurer or a plan.
- Fill the policy application form carefully and personally.
- Instead of buying a policy directly from an insurer, go for an insurance broking firm licensed by IRDAI because they offer better rates for the same coverage.

* Don’ts

- Don’t buy a life insurance policy for investment purposes; buy it for ‘financial protection’. Please note that availing tax benefits on the premium amount under Section 80C of the Income Tax Act is just an added advantage.
- Don’t hide any important detail as it creates ground for revoking benefits of the life insurance policy and all premium payments done so far can also end up being forfeited.
- Paying more attention to the cost rather than insurance coverage is a bad idea.
- Avoid signing blank application and/or delaying payment of premiums.