When applying for Term Insurance
There are a host of Life Insurance products available of which the one that gives the maximum protection for a given amount of annual premium is term insurance. To learn how much cover you require (also called sum assured), you may use our life insurance calculator
Term insurance is ideal for those people who do not wish to mix their investment objective with a risk objective. In case the person insured survives the entire term of the policy, no money is payable to the family of the insured. But in case of death, the family of the insured person gets a very high sum assured (e.g.you can get a Rs.1 crore sum insured for 25 years at just Rs. 1000 per month for somebody who is a non tobacco user and is 30 year old ). Here is detailed comparison of term plans available today.
The most important thing to take care of while applying for term insurance (or any life insurance) policy is to disclose all personal details e.g. whether the insured person is a smoker or not, the medical history of the insured person, your existing and proposed life insurance polcies, and so on. Please take time out to fill the form yourself. This will ensure that your family does not face any issues if they have to file a claim on the policy. Better still buy online as online policies are normally cheaper than those available offline.
You should also consider taking a critical illness rider on top of your base term plan wherever available. This will ensure that you get a lump sum amount if you have the misfortune of being stricken by any critical illness such as a paralytic stroke, organ failure, multiple schelorosis, etc
You can also consider taking a temperory/permanent disability rider due to an accident on top of your term policy where available.
Keep a copy of all documents submitted to the insurance company for your future reference.
Any promise made by the agent or even an official of the insurance company has no value unless it is in writing or at least on email.
So if you are basing your decision on any such promise make sure you get it in record in some form.