“What I should be mindful of before buying life insurance”

After having reviewed the cost and benefits associated with the life insurance product (as we had discussed in our last column), you must take care of the following, before you purchase your life insurance product

1. Make sure you have read the product literature properly- Life insurance is a long-term product and it is worth spending adequate time before you get into a long-term commitment. So, make sure you read the product brochure, materials and illustrations to understand fully the benefits and costs associated with the product and how exactly it will work for you. You must also understand and know the terms and conditions associated with buying the life insurance policy- for example, how much time it will take to get your policy issued, what all information is required from you for applying for the insurance product, etc

2. Ask question- Make sure you ask the relevant questions to the person who is helping you with buying the life insurance product. You must ask these important questions- what will happen if I stop paying my premium? How and where can I pay my premiums? How can my family make the claim, if and when needed?

3. Carefully fill in the application form- When an insurance company accepts to provide you with life insurance, the company bases its decision on the information provided by you in the application form. It is therefore important that one must fill up the application form himself or herself; be completely transparent in providing the information in the application form to make it easy for the life insurance company to assess the application and make sure the application form and all other required documents have been provided to the insurance company, along with the application form.

In short, just like buying any other product, you do your due analysis of all benefits and costs and make sure you know everything that you should know about the product, you must treat your life insurance product also in the same manner. After all, it is about your peace of mind and financial security of your family.

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