5 Things to Think Before Buying Life Insurance

Keep these 5 things in mind as you go about your life insurance buying decision:

Understand the purpose of buying insurance. Remember that you are buying insurance to plan for some specific goals, cover your life and safeguard the financial future of your dependents. Do not buy insurance only for secondary benefits like tax savings.

The ideal tenure of your Life Insurance Policy should be your ‘Retirement Age minus your Current Age’. This means that if you are currently 35 years old and wish to retire by the age of 65, your policy tenure should be 30 years or more. Popular term plans like Max Life Smart Term Plan (UIN: 104N113V04; A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan) also offer long term life insurance cover until age 85 years.

Add-ons are additional benefits along with the base cover, such as critical illness rider, accidental death benefit rider, waiver of premium rider, disability rider, etc. These are beneficial additions which can be opted for by paying nominal premiums.

Before buying a life insurance policy, it's important to assure yourself about the credentials of your chosen life insurance company.

•  Claims Settlement Ratio - This refers to the no. of claims paid by an insurance company for every 100 claims that were registered. Max Life paid 99.65% of individual death claims in FY'23-24 (Src. Individual Death Claim Paid Ratio as per Audited Financials for FY 2023-2024).
•  Assets Under Management (AUM) - This refers to the current market value of the funds managed by the financial services company. A higher AUM suggests that the portfolio is strong and performing well.
• Solvency Ratio - This is a ratio used to measure the financial stability of a company. It reflects the company's ability to settle its long-term debts. A higher solvency ratio means that a company is comfortably placed to pay out claims. Max Life has a solvency ratio of 172%, more than 1.15 times the mandatory 150%, which indicates our strong and stable financial position.

In addition to these, excellence in customer service, reviews and corporate governance practices give vital information about the overall performance of the company. Read more to learn about Max Life as an organization. Also, you can go through the different types of plans offered.