Raj Khosla
Some lessons are very difficult, but in the case of an insurance policy it should not be so. Life cover should be so that it has all the loyalty and future goals. However, we must also choose the correct option from the other aspects of the policy. For example, it will be very painful to end the policy when you need it most. You must also avoid mistakes from which the policy lapses or the claim is rejected. We are here to tell what things should be taken care of when buying a policy.
Give right details to the insurance company-
Insurance contract runs on trust. If the insurance company realizes that the policyholder has misinterpreted the form, the contract will be rejected. For people who do not drink cigarettes, the premium is reduced. At the same time, if you smoke and drink then do not forget about wrong information. Claims may be dismissed after hiding these habits or diseases from the insurance company. If you smoke and drink then definitely tell the insurance company about it.
Make a Medical Test-
Term plans are high value cover, so companies give bills many medical tests before issuing the policy. Although in some cases the company does not insist on it, just ask for a good health declaration from Bayer. It can harm you. On the untimely demise of the policy holder, the company tries to show that Bayer had lied while taking the policy or concealed chronic disease.
If Bayer conducts medical tests, then the responsibility is to the doctor and the doctor who performs medical tests. They will not be able to challenge the nominee's insurance claim. Take this matter, take the policy only when the company has done full medical test. Three years later an insurance company can not dismiss the claim or challenge the declared information.
Just do not go to the price-
Pure term is the cheapest insurance policy because there is no investment component in it. The cover of one crore can be taken from 8,000 to 10,000 rupees annually. However, the decision to take a policy should not be seen only by looking at lower premiums. A policy should be taken from a company whose record settlement record is unblemished and a solid record of customer orientation. What are the benefits of taking a 1,000 or 2000 rupee cheap policy when you are not completely convinced, if you do not have a nominee, you will get a claim.
Take the right duration policy-
Term Plan The policyholder's death forms the income of the family. The policy will be for as long as it wants to keep working. The policy can be taken from 55 years to 65 years or more. The policy should not be of such a short time, which will end before the policyholder retires. At that time the need for term policy is highest and then taking a new policy will be very expensive. It may be that health is not good, saying this by saying it should not be covered. Some companies offer a policy for 80 to 90 years. In these, insurance holders (the policy holders) get the opportunity to leave some property in their inheritance for children. Many times these moral hazards are also born. For example, do not stop providing medical facilities to the policy holder for the amount of family insurance. Monthly plan is the most expensive, but less money comes out every time, so investors are more attractive. If you do not have cashflow problems then the Annual Premium Plan is best.
(The author is Founder and MD of MyMoneyMantra.com.)