Buy Insurance Policies with Care

Before buying an insurance policy, you should read and understand the policy documents carefully to clear out doubts as many times insurers and their intermediaries tries to Mis-sell their insurance products.

What you should do before buying insurance products:

  • Buy insurance policies from a listed insurer or through his authorised intermediary (List of Life Insurers & General Insurers ).
  • Check whether policy has a single or regular premium option.
  • Check out the policy term and premium paying term. They can be different
  • Check out the surrender value of your policy.
  • What is covered and what is not covered under the policy.
  • Check the assured returns and bonuses.
  • Do not sign a blank proposal form
  • Do not leave any portion of the form unanswered. If you are not filling up the form by yourself then ensure that the contents should be fully explained to you.
  • Do not hide relevant information from the insurer as it might lead to disputes at the time of claim.

What you should also do before buying ULIP Insurance Products:

  • ULIP products contain the investment risk. So, check all the information related to this risk.
  • Know the different charges levied on the ULIP Products before buying it. These charges could be Initial Charges, Annual Charges, Investment Charges, Surrender Charges and administration charges.
  • Be aware that the value of investments alters with the performance of the underlying fund (equity or bond or in both). So, evaluate the performance of the funds before you invest in it.