A life insurance policy can be used in diverse ways in case you are looking for insurance policy for planning to buy one you need to keep a few tips in mind because this will be the first time you actually will be buying an life insurance policy. In spite of making the right choice being a necessity for future safety, many people just simply rely on what other people tell them to do or what other people suggest them to buy.
7 tips which you should keep in mind before buying life insurance for the first time:
- It is very necessary for you to learn more about varying types of life insurance products it is important for you to familiarize yourself with the different types of life insurance before you choose one policy for yourself. Know that insurance plans vary in terms of their features and benefits.
- Make a comparison prior to choosing to make sure that you get ample coverage for the payable premium. You should always compare multiple policies. For instance, suppose you are looking to buy a term insurance policy. You should then compare multiple products in terms of parameters like the premium amount, inclusions and exclusions, benefits and so on.
- Choose a sum assured that is sufficient. This should be enough to cover all the needs of your entire family in case of your demise. You should always check this aspect carefully prior to making any choice.
- Get riders to boost your insurance policy. Several times, the insurer gives you choices of add-ons which you should take a closer look at. There are several options including accidental death benefit which is really helpful to say the least. Make sure that you get more protection with riders whenever necessary.
- Always go through the policy document and take your time while doing this. It is vital that you should always understand all the terms and conditions before signing on the dotted line. You should get the policy returned in case you don’t like it. The free-look period is when you get the opportunity to ponder over the matter.
- Make your premium payments on time in order to ensure that your insurance policy stays active. You should always pay premiums on the due date or before. There is a grace period of 15-30 days for paying the premium amount provided.
- Get tax benefits every year on the premiums paid for life insurance policies under Section 80C. You can always expect maximum tax benefits on life insurance plans each year. Do not forget to include the same while filing your taxes.
A life insurance policy can be used in diverse ways in case you are looking for an insurance policy for planning to buy one you need to keep a few tips in mind because this will be the first time you actually will be buying an insurance policy. In spite of making the right choice being a necessity for future safety, many people just simply rely on what other people tell them to do or what other people suggest to them to buy.