Insurance Awareness Day: 5 smart tips for purchasing a life insurance policy
National Insurance Awareness Day, observed every year on June 28, reminds us of the importance of insurance. In this world full of uncertainties, a life insurance policy plays a crucial role for you in protecting your loved ones financially in case any untoward events occur during the policy period. In such an event, the insurance company pays the assured sum to your nominee, helping the impacted family manage tough times without financial stress.
Buying the right life insurance plan is essential because it comes with other benefits as well depending on the policy type. A life insurance policy is a legal contract between you and a life insurance provider.
Srinidhi Shama Rao, Chief Strategy Officer at Bandhan Life Insurance, offers valuable insights into key considerations for individuals purchasing life insurance. Rao shared 5 smart tips for new insurance policy buyers.
Also read: National Insurance Awareness Day 2024: Closing India’s protection gap for enhanced financial security
Calculate how much financial support your family would need in your absence. This includes factors like daily expenses, future financial goals (such as education or marriage expenses for your children), outstanding debts, and other liabilities.
Read and understand the policy terms, including coverage duration, premium payments, exclusions, and any additional benefits or riders offered (such as critical illness or disability riders). Ensure the policy aligns with your financial goals and provides adequate coverage.
Research and compare different insurance plans to find one that best suits your needs. Term insurance, savings plans, and ULIPs all cater to different needs and goals.
Premiums, coverage amount, flexibility in premium payments, and
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