Guidelines to purchase a Life Insurance

As discussed previously Life Insurance is not a mere insurance option but a smart investment as well. Prudent and early buying of the same will not only secure your family but also looks after your finances in heavy outflow. Here are some guidelines to buy Life Insurance:
First and foremost, conclude with insurance requirements of you and your family. Decide on your sum insured you need. Here, your medical history will give you a rough idea about sum insured. Nevertheless, future inflation, increasing medical cost and lifestyle diseases should also be taken into consideration while deciding on sum insured. Tenure of the cover and various riders should also be chosen or decided smartly.
You can also take the help of insurance advisor to choose the correct insurance to gratify your insurance need. Don’t restrict yourself to a particular thought; be open and let other suggestions come in.
Life cover cost should be clearly understood. Especially Unit-Linked Insurance Plans (ULIP) have different charges or fees such as policy administration and premium allocation charge. Have an idea of these charges beforehand levied on the policy you are being told about. Also, try and understand the various fund options available. You can also switch benefits of a particular plan. Get it confirmed in advance whether it is allowed or not.
Don’t get swayed away with fancy words or promises of the agent or advisor; unless it is offered in written as part of the policy brochure. Read all documents, especially terms and conditions thoroughly and get a clear picture of inclusions and exclusions. Fill the policy proposal form on your own. This will help you understand the plan clearly. It is highly suggested not to provide false or wrong information while filling up the form. Providing wrong information will affect your future claim negatively. Provide clear and true medical history.  Never ever delay the premium payment. This will charge you the penalty out of delay in payment.
The Don’ts
1) Do not hide any facts while filling up the proposal form. If you are found guilty of hiding information, this could have a bearing on your claims.
2) While seeking advice from insurance advisors do not be carried away with their promises, unless it is offered in written as part of the policy brochure.
3) Do not miss or delay the premium payment.