There's no strict rule on buying insurance; it entirely depends on every individual's financial planning, income slab and risk appetite. Nonetheless, here are a few primary tips you should follow on buying an insurance product.
- Buying life insurance is the monetary security for your family. So, make sure your policy is purchased by a licensed company.
- Buy insurance from a licensed agent only, who is authorized to sell LIC policies. You can check the license prior to purchasing the policy.
- Ask for premium quotes and proposals from several insurance companies and compare it. Different policies give different benefits, so select one that is most suitable to you.
- Completely understand all necessities like terms and conditions along with exclusions in the policy. You can also ask for explanations from the insurance company.
- Don’t buy 'packaged' products, as policies often have fixed coverage’s you don't need, under pressure by the agent. You may go for additional coverage of your choice at an additional premium which will be a value addition.
- Ensure that the date of insurance and date of the issuance of policy are same. Ask your agent about the effective date of insurance.
- Never sign blank application forms. Completely filled in application with correct details should be signed to avoid delays or even refusal of claims at a later stage.
- Make sure that all questions pertaining to family history, personal health are answered carefully. Any concealment of material facts could obstruct claim to your nominees.
- Ensure your cheque or cash is submitted to the insurance company and ask the agent for a receipt as proof of payment.
- Life policies manifest a 'free look' span of 15 days from the date of receipt. During this period make sure that policy document does not contain any condition which was not explained to you by the agent. If there is any such condition, you can return it to the insurance company and ask for refund within 15 days.
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