What to do with your life insurance policy

Planning for the future: What to do with your life insurance policy

Care must be taken while buying, receiving, preserving, and ending your #lifeinsurance plan. Here are some things to keep in mind.

Stage 1 – Before Buying

Decide what to buy: Life insurance comes in various forms: Term plans, child plans.money back plans, ULIPs, retirement plans.ULIPs, retirement plans.
Determine your need for insurance correctly.

Ascertain ideal coverage: It’s vital that you calculate your insurance requirements and not limit it to the amount of tax you need to save. As a thumb rule, your insurance should provide at least 15-20 times your current annual income.


Ascertain ideal tenure & premium: Know your policy’s tenure. Ideally, pick the longest possible tenure — 30-40 years, or more.

Understand policy benefits: Ascertain the policy benefits and understand under what conditions they’re paid out. Beyond the basic sum assured, maturity amount, and surrender value, there may be riders and add-ons.

Read the application carefully: Ensure the guarantees of the policy are printed in the product brochure. Do not take verbal assurances alone from the seller. Read the application form carefully.


Stage 2 – After Buying & During Tenure


Check policy for errors: Once you receive your policy document, ensure it is what you had paid for. The product name, sum assured, tenure, premium, nominee details

Tell your family: After receiving the policy, tell your family and nominees about it. Keep the policy in a safe place where it can be accessed by your nominees. Also, ensure they understand all policy benefits.

insure regular payments: Check for your premium due dates. They could be monthly, quarterly, semi-annual or annual as per your request.

Use free look period if necessary: If there are minor corrections to be made on the policy, you may do these by communicating with your insurer.

Ensure continuity: For a life insurance policy to keep delivering its benefits, you must keep paying your premiums regularly.

Compare Life Insurance Policy : http://www.policyadvisor.in/life-insurance-quotes/

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