Life insurance buying tips: Planning to get a policy for yourself? Know these important Dos and Don’ts

If you already have a life insurance plan or are planning to buy one, consider these top tips will help you to get the best bargain in your policy. Zee Business suggests you these five Life insurance buying tips will keep you on a strong footing forever.

1) Don’t forget to review your insurance policy from time-to-time: If you have a policy, you must consider reviewing it from time to time. The requirements may not remain same at all times. If you are planning to buy one, know your requirements and risks. It is also important to be clear about what you are getting from your policy. Remove unnecessary or extra features to reduce the cost of the premiums.

If your premiums are automatically getting debited from your accounts, check your bank statements for additional charges that might have been levied by your service provider.

2) Consider plans with annual premium options: While, a lump sum payment in one go could be problematic for many, you should make efforts to know if you are paying more through monthly instalments by way of service charges. If there is a significant difference, it is better to go for annual instalments. Consider premium payment options which may offer you cashbacks.

3) Know your deductibles: While buying a life insurance policy, it is better to know your capacity to pay money upfront in case of an emergency. You are required to pay some amount upfront while getting admitted to a hospital to avail the insurance benefits. This amount is called ‘deductible’. Your premiums reduce if your deductibles are high and vice versa.

4) Do not let your policy lapse: It is important to not allow your policy to lapse. It happens when you fail to pay premiums on time. This leads to a negative insurance score. This will increase your premium in case of renewal of policy. In case if you are short on funds, approach the insurance company to discuss the option of postponing the payment or partial payment.

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5) Check features/benefits: Insurance companies offer no claim bonus that reduces your premiums on renewal. Know the eligibility. Also, compare insurance policies before buying one. Look for offers. The objective of life insurance policy is to give your family a financial cover in case of an unforeseen event. Never compromise on the policy for small benefits.