Thread by @Funter21510910

12 things to remember while buying Life Insurance:

1. Take term plan and not an endowment plan. The insurance cover is higher for a term plan for the same premium. However, you do not get maturity benefits in term plan. Remember, you are buying Insurance and not a FD. 1/9

2. Take your plan from an insurance company that is expected to survive 20-30 years. Insurance is used over long periods and therefore it is necessary to choose a company that has a size/ networth for a long life (what an irony!). Don't look beyond LIC, SBI, ICICI and HDFC. 2/9

3. Take adequate cover - If you think Rs. 2 Cr is a good enough cover for you; wait; increase your cover to Rs. 5 Cr. Inflation levels are high in India and money loses its value very fast. Remember how valuable Rs. 1 lakh were 20 years back. 3/9

4. The settlement speed is best in case of LIC while premiums of HDFC/ ICICI are better. Take atleast 20% of your cover from LIC. In case on an unfortunate incident, LIC approves first; others follow suit. However, don't take policies from more than 2-3 companies. 4/9

5. Don't let your Financial Advisor sell you ULIPs. .

6. Disclose all the information correctly - don't hide smoking/ drinking habits or health history to save extra premium. It could become a reason for claim rejection later. 5/9

7. Fill the Nominee name correctly.

8. Take riders if it doesn't add much to your premium. E.g.- A critical illness cover could pay entire claim amount to your family if you are diagnosed with a 'critical' illness.

However, don't overdo the riders. Keep the plan simple. 6/9

11. Tenure of term insurance - Take a call about your age till which your family would require an insurance support. Insurance till the age of 80 doesn't make sense. Remember, we bear more financial responsibilities till the retirement age. Lower tenure means low premiums. 8/9

12. Most importantly, share the details of your insurance with your nominee/ family members.

Disclaimer - this post is just an opinion. Take your own call keeping in mind your financial position. This post is not an advertisment for the companies mentioned herein. 9/9

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