Steps Toward Right Insuranace Policy:
Author:
paressh
Insurance Ombusmen offices are flooding with complaints of insurance mis-selling.Govt. of India allows private players to enter into insurance sector,competition become tough and tougher every year.Uptill there was monopoly of LIC India only.
With rise in numbers of insurance companies,product mis-selling is also on rise.But important question is that is it only insurance advisor to blame about it?Isn’t our ignorance is responsible for it?So before taking any insurance plan one should do sufficient homework.We have provided with some important things to look at before and after applying for insurance plan.
1.Assess your need of insurance:One should have a clear idea about its insurance requirement and term of insurance.Ideally,one should have cover of 10 times of annual income and term upto age og 60 Yrs.Here, we can assume that we will be free from our financial responsibilitieens at age of 60.
2.Take information about life insurance companies offering different kind of products,premiums,claim settlement ratio etc.One can easily get this information by surfing over net.
3.Choose a Company.Call advisor of said company.Each company offers different products like Term insurance,Endowment plans,Moneyback policies,Unit linked plans.If you are planning your insurance for long term basis,better to take a term insurance.In such plans only risk is covered and you purchase a risk only.Premiums are low for high amount of cover. Premium is level premium and remains constant throughout policy term.
4.Fill the form yourself only.Don’t let advisor to fill it.Give true and complete information about your health to avoid problems in future.
5.IRDA has made it compulsory to provide benefit illustration to clients.If you are opting for Unit linked Insurance Plans or traditional plans,take proper views of charges related to policy.The returns shown 6% and 10% are indicative only.These are not real or guaranteed returns of future.
6.Do not give authority to anyone to collect policy document.Insurance companies send it via registered posts or courier.
7.Free look period is valid upto 15 days from receipt of policy.One can return policy within this period if you found something misleading.If you find serious issues ,don’t waste times calling customer care.Rather go to office of company,fill the form of Free look cancellation of policy with reasons.
Your premium will be refunded after some procedure after deduction of service charges and company expenses like medical check up,etc (if any).
so ascertain yourself of all the things and go for your much needed friend..Life Insurance.
Article Source: http://www.articlesbase.com/insurance-articles/steps-toward-right-insuranace-policy-4353366.html
About the Author
Paresh
http://www.saving-ideas.com
