Have you chosen the right Insurance for yourself? Sarju Simaria, CFO, Edelweiss Tokio Life Insurance gives you few points to keep in mind
Insuranceis the subject matter of solicitation. This means you as a customer make an offer that, in lieu of a Premium payment, the life insurance company shall upon an occurrence of a contingency (death, disability, or an accident) linked with your life, secure the financial needs for your family by paying them the amount assured.
On the onset of any of the above said mishaps, it's important that you know how to make the best out of your life insurance policy. For this you need to:
Understand your needs and get the right advice
The uncertainties of life, death, sickness and old age support cannot be left unattended or uncovered. Financial security and protection are sacrosanct under any situation–unexpected emergencies, demise or living for too long. Therefore it is imperative that you recognize the risks in your life and take appropriate measures.
Having recognized the risks, spend some time understanding your needs. In order to do this, make an assessment of your income flow, your expenditure, and your present and future obligations vis-a-vis your lifestyle. Once that is done, consult an insurance advisor, a person whom you can trust and who can offer you honest advice.
Be candid with your insurance advisor
Be candid with your insurance advisor about your risks, your needs, your financial assessment and your aspirations. Evaluate product options and features, and ensure that your needs are met from his/ her propositions. Get a full understanding on premium terms and the cycle of premium payments, availability of guarantee of return, lock in period, implications of premium default etc. Compare a number of policies before narrowing down on one; since it will help you get the best deal.
Read, understand and check the details
Understand the benefits illustrated in case of a term cum savings product, where attention should be paid on deductions and the value allocated to the fund. Do not buy an insurance product to oblige a relative or a friend. Learn to say 'no' if you are not convinced.
Never sign a blank proposal form. Provide honest and correct disclosure in the proposal form and do not hide or distort your medical history. Wrong statements or information would defeat the whole purpose of seeking an insurance cover as it can lead to non-payment of insurance claim by the insurance company to your family.
Do not ask for a rebate from your agent. This is prohibited.
In case of medical complications an insurance company may make a counter offer to provide you insurance with higher premium. This should ring alarm bells, since this means that the doctors and underwriters think your medical condition puts your health in a higher risk category. Hence, think carefully before you reject the counter offer.
Carefully read and check your details in the policy and pay special attention to the details of your name, age, contact, nominee, plan name, policy term, premium amount, premium paying term, premium due dates etc. The policy document set also contains a copy of the proposer form submitted by you, so don't forget to check it. Rectify any errors in the details of your policy documents, immediately.
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