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What to look for in your Insurance Contract?

What to look for in your Insurance Contract?

Disclaimer: In Unit Linked Policies, the investment Risk in the investment portfolio is borne by the policyholder.

^*Disclaimer :

Max Life Smart Secure Plus Plan. A non-linked non-participating individual pure risk premium life insurance plan| The premium calculated as per Standard premium for 30 year old healthy male, non-smoker, 40 years policy term, 40 years premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan and is rounded off from Rs. 3,27,782. ^~1Condition for special exit value: Option to receive all premiums paid back at the age of 55 years and the life cover also gets terminated. Total premiums paid towards the policy (excl. GST) will be the Special Exit Value payable at the age of 55 years in case the policy holder wishes to completely exit the policy. Benefit available with special exit value -Total premium paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies & modal extra. The total premiums paid plus underwriting extra premiums paid plus loadings for modal premiums exclusive of all applicable taxes, cesses or levies. This value shall be applicable on the base cover premium only and not to additional optional benefits like ACI, Accident cover, Joint life cover and Voluntary Sum Assured Top-Up.

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What To Look For In Your Insurance Contract?

Life insurance is the only financial tool that offers the triple advantage of risk coverage, long term savings, and tax benefit. It offers financial protection to an individual after taking into account the present and future value of his assets and liabilities. However, consumers need to develop a better understanding of the life insurance products that they buy.

There are a number of things that you must understand regarding your life insurance policy and this document is a guide to help you check the same.

Mentioned below are the key parameters to weigh once you receive the policy document -

1. Verify personal details

Personal data provided to the life insurance company forms a very important part of policy servicing and settlement of all claims.

Please make sure that all personal details such as your name, age, address, etc. are mentioned correctly.

Moreover, do be certain that all aspects related to personal habits or health details are mentioned correctly as per the disclosures made by you in the proposal form.

2. Analyze the benefits

The benefits of your life insurance policy must correspond with your long-term goals. After the receipt of the policy document, go through the features and benefits of the product and check if they match with promises made during the purchase. Cross-check features such as sum assured, premium amount, the flexibility of the plan, etc.

3. Check the riders

In addition to life coverage, you may have purchased add-on covers known as "riders" for other types of contingencies. Go through the insurance contract to understand the rider coverage.

4. Consider the payment tenure

Please check for how long you need to pay premiums and also what mode of payment you may have chosen, for example half-yearly, quarterly, annual, etc.

You may sometime get wrong advice like "you need to pay for only 3/5 years". Please do not fall for such advice. Life insurance is a long-term savings and protection tool and its benefits can be seen only if one buys it for the long-term.

What to look for in your Insurance Contract?

Get ₹1 Cr. Life Cover Just @₹615^@1/month

What To Look For In Your Insurance Contract?