When it comes to purchasing life insurance, it’s essential to be well-informed to make the right choice for yourself and your loved ones. Here are 10 key points to keep in mind, as outlined by Vishal Subharwal, Chief Marketing Officer and Group Head – Strategy, Distribution Planning, and e-Commerce at HDFC Life:
- Know your Human Life Value (HLV) and purchase life insurance cover accordingly: Calculate your HLV to determine the adequate life insurance coverage required. This will help you choose the right policy that covers your dependents’ financial needs.
- Choose policies based on your life stage, risk appetite, and life goals: Consider your current life stage, risk tolerance, and long-term goals when selecting a life insurance policy. This will help you make an informed decision.
- Decide on policy term and premium amount based on your goals: Align your policy term and premium amount with your financial goals, ensuring you’re paying for the coverage you need.
- Don’t settle for the cheapest plan: Consider the features, benefits, and longevity of the insurance policy, rather than just its price.
- Read and understand policy features and terms and conditions: Carefully review the policy’s terms, conditions, and features to ensure you’re aware of what you’re purchasing.
- Consider add-on riders for relevant benefits and risk coverage: If you need additional coverage or benefits, consider purchasing riders that align with your needs.
- Fill out the application form accurately, disclosing all necessary information: Provide accurate and complete information on your application form to ensure a smooth claims process.
- Ensure a nominee is assigned to your policy and is aware of the same: Designate a nominee and ensure they understand their role in case of an unexpected event.
- Save your policy electronically in an e-insurance account (eIA): Keep your policy safe and easily accessible by storing it in an e-insurance account.
- Take advantage of the 30-day free-look offer: Most insurance policies come with a 30-day free-look period, allowing you to review and cancel or modify your policy if needed.
By keeping these points in mind, you’ll be well-equipped to make an informed decision when purchasing life insurance, ensuring you have adequate coverage for your loved ones.