Things to Keep in Mind Before Buying a Life Insurance Plan

1. Know your current life stage

As you grow older, you will pass through various stages. Some of these life stages are getting your first job, your marriage, birth of your child, his or her teenage years, and your retirement. At these different life stages, you will have different goals and plans. Planning for these goals in advance will help you achieve them.

2. Plan for a specific financial goal

3. Calculate the amount of Life Cover that you need

4. Choose the longest possible term

5. Verify all charges and benefits 

Always take time to understand the charges attached to your life insurance plan. You should also check the tax benefits available under the insurance policy.

6. Understand the claim aspects

You can learn about a company’s claim settlement process by checking the quality and speed of the claim settlement process. You can also check the Claim Settlement Ratio of a company. This ratio is an indication of the claims settled by the company compared to the number of claims received by the company. It is advisable to select a company that has a higher Claim Settlement Ratio.

7. Stay informed about all servicing options offered

Check the service touch points that the insurance company offers. You should check if the company has a wide network of branches, the number of services offered on digital platforms, and other similar information. These details help you get convenient servicing at a later stage in your policy.

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