Following the global pandemic, there has been a significant increase in the demand for life insurance. However, because there are dozens of life insurance companies and hundreds of products on the market, it can be difficult to determine which insurance is best for you. People are frequently victims of insurance fraud.
Subhasish Acharya, Chief Distribution Officer, Future Generali India Life Insurance Company Limited, provides some advice on how to select the best life insurance product for you or your family. Also, avoid falling victim to scams or agents who oversell and missell.
Key Features Documents That Must Be Read
Before purchasing insurance, most consumers do not read the Key Features Documents (KFDs). This is a huge blunder. All life insurance products have a free-look period of up to 15 days from the date the policy is issued.
If the policyholder believes that the insurance is not suitable for their needs or that they were sold on a different note than what is promised in the KFD, the policyholder has 15 days to cancel the purchased policy. Following the processing of the cancellation application, the premium paid is refunded, and the remaining balance after statutory deductions is transferred to the registered bank account.
Ignore Extortion Attempts
Multiple insurance agents or malicious companies may have access to your data. Such people may ask you to upgrade or replace your policy by claiming that your current coverage is insufficient. If you did your homework before purchasing a policy, it is in your best interest to simply keep paying the premiums on time.
Keep close family members informed at all times.
Family members should be fully aware of the life insurance policies you have purchased so that they can benefit from them when you are no longer alive. Keep the policy document in both digital and physical form so that it can be easily accessed when needed. Family members should also be informed in detail about how to use the insurance proceeds in the event of death so that they can spend the money wisely.
It is always advantageous to have current information about your insurance policy and the insurer who issued it. It is preferable to rely on certified consultants. Only by remaining vigilant can one thwart the efforts of fraudsters and malicious individuals.
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Recognize the significance of life insurance.
Before purchasing insurance, you should have a clear understanding of why you are purchasing a policy and carefully consider its coverage and coverage period. Most people purchase insurance policies for a short period of time or with insufficient coverage and sum insured in order to save money on premiums.
The amount of life insurance a person requires is determined by his family’s current lifestyle expenses and how much they are likely to rise in the future. In general, the Sum Assured should be at least 20 times your annual income. However, the best course of action is to seek the advice of a reputable professional in this matter.
Selecting the Best Life Insurance Product
It is critical to understand which plan on the market is best for you. Term insurance, traditional plans, and unit-linked insurance plans (ULIPs) are the most popular. Term insurance is solely for protection, and the lowest premium is charged if taken early, i.e. at a young age. On policy maturity, one can also choose additional riders for critical illness coverage, accidental death benefit, or survival benefit.
Traditional schemes, on the other hand, can either be guaranteed without a bonus or declared with a bonus every year. Unit-linked plans are a hybrid of insurance and investment, but they must be carefully considered because their returns are not guaranteed.
