How To Buy An Insurance Policy – Life Insurance Policy Guide Steps To Be Followed

How To Buy An Insurance Policy

How To Buy An Insurance PolicyIn our busy life, we often forget to safeguard our loved ones from financial crises that may take placed in the event of our life risk. It’s a careless behavior that can cost your family in future. To avoid this risk, check How To Buy An Insurance Policy.

Life Insurance Policy secures the family of the insured against financial emergency that may arise post the unfortunate event of your premature demise. We have displayed some life insurance policy guide steps to be followed by you to make things convenient for you and for your family.

How To Buy An Insurance Policy

What is Life Insurance Policy?

Life Insurance plan is the safest and the most secure way to protect your loved ones against the risk of financial crises that may arise post the unfortunate event of your untimely demise.

To take up such policy an amount is paid by the insured party as premium for the policy and is payable on monthly or yearly basis on the basis of the policy and sum assured. If any loss occurs to the insured party then the promising party after the investigation will have to fulfill the contract of Insurance policy.

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How can you Claim a Life Insurance Policy?

You can claim life insurance under the following two circumstances:

  • In case of death of the insured
  • Maturity of the life insurance plan

Life Insurance Policy – Key Points

Purpose A life insurance plan covers life of the Insured
Affordability Least expensive
Core Benefits The nominee is paid the Death benefit
or the sum assured in case of an unforeseen
event of the demise of the policyholder.
Additional Benefits Surrender Benefit, Maturity Benefits,
Loyalty Addition etc.
Tax Benefits The beneficiary gets the tax benefits
under Section 80C, Section 10 (10D) of
the IT Act 1961.
The paid premiums against critical illness
are also considered to be eligible for a
deduction under the Section 80D of the
Income Tax Act, 1961.
Types of Plans  Savings, term plans, retirement, child-related
(wealth creation) etc.
Types of Cover  Single as well as Group Coverage
Life Insurance Policy Types Term Insurance, Endowment Policy,
ULIP – Unit Linked Insurance Plan,
Money Back Life Insurance, Whole Life Insurance


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Insurance Companies Contact Numbers

Life Insurance Policy Guide Steps

  • First you need to choose the insurance company as there is numbers of companies and possibility is that maybe many of them might not be trustworthy, so choose the company according to your choice.
  • Then you need to decide how much premium you would be able to pay and the cost depends on earning factor.
  • Formalities such as filling the documents, you can fill the form online also and a person will get in touch to fulfill the formalities and to guide you further.
  • Do not provide the false details on the form. Always be honest and think about the nominee and carefully fill the asked details.

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Things That You Should Consider While Dealing With The Insurance Intermediaries

  • While dealing with Insurance Intermediaries, make sure that the person is authorized and holds a valid license to sell life insurance plan.
  • Ask for various life insurance policies and grab details of each.
  • Understand your needs and consider the policy that you can afford. Don’t get influenced from great promises and over-selling tactics. Focus on what policy you can afford and that suits your requirements.
  • Understand the policy terms and conditions and ask questions if you face any sort of doubts.
  • Read the proposal form clearly and fill it up by yourself. Avoid signing on a blank proposal form. Check the terms and conditions of the proposal and if you are facing any doubt in any term, ask the insurer for explanation.
  • If you choose to make payment of premium with the help of an intermediary, ask for a duly signed receipt and also make sure that he is an authorized person to do this business.
  • After you have taken a policy, if somehow you are still unclear about any term, contact your intermediary and understand it. There is a free-look period for life insurance and for health insurance policies of a term of three years or more and hence if you are not satisfied with the terms, you may return the policy immediately.
  • Get deep knowledge of the documents and procedures involved in making a claim. Remember that In the event of a claim, there may be an involvement of other agencies apart from the insurance company.

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List of Life Insurance Providers with Data & Figure

Life Insurance
Providers
Claims Received Claims Paid Grievances
Solved Ratio (%)
LIC 761983 749249 100.00
SBI Life 16102 15037 99.97
ICICI Prudential Life 11034 10615 99.87
HDFC Life 12430 11811 99.38
Bajaj Allianz Life 17967 16404 99.90
Max Life 9175 8895 100.00
Birla Sun Life 7204 6372 99.99
Kotak Life 2767 2465 93.11
Reliance Life 14618 13714 98.84
India First 1891 1359 98.82
PNB MetLife 3094 2641 99.55
Canara HSBC
Oriental Bank of
Commerce Life
571 531 99.60
TATA AIA Life 3311 3205 100.00
DHFL Pramerica 550 460 99.65
Shriram Life 2510 1512 96.70
Star Union Dai-ichi 1365 1102 95.42
Exide Life 3233 2889 99.59
IDBI Federal 1085 920 100.00
Bharti AXA Life 1261 1009 100.00
Aviva 1531 1255 100.00
Future Generali 1530 1381 99.31
Edelweiss Tokio 141 120 99.09
Aegon Life 533 508 5.00
Sahara Life 794 717 97.14


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Documents Required for Buying a Life Insurance Policy

You will require the documents mentioned below to buy a life insurance cover:

  • Proof of Identity (PAN Card/ Voter ID/Ration Card/ Driving License)
  • Proof of Age (SSC Certificate/PAN Card/Driving License/Passport)
  • Proof of Residence (Voter ID/Water Bill/Ration Card/Electricity Bill/Telephone Bill/Passport)
  • Proof of Income (Salary Slip/Form 16/Income Tax Returns/Pension Pass Book)
  • Passport-sized photographs

As our life is unpredictable these insurance gives us a cover and a relaxation that if something happens then at least our family is secured. Therefore it gives a peace of mind and provides safety and security.

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