When making any purchase decision – be it washing powder or luxury car, we all want to maximize the value for the price we pay. But when it comes to insurance policies, often we hesitate to ask any question and just sign on the form. The problem starts after few years when we realize that we did not ask the right questions nor read the fine print.
Here are the 10 things you should do before signing insurance proposal form:
- Anaylse and ensure that the plan meets your Insurance Needs and Long Term Financial Goals.
- Check the plan type. Is it Market Linked or Traditional ?
- Understand the risk factors, terms and conditions of the plan. Read the sales brochure carefully.
- Check whether it is a Single or Regular Premium Plan.
- Confirm the Premium Amount and the Premium Payment Term.
- Check the Benefit Illustration.
- Confirm the tenure of the plan. Make sure it is appropriate.
- Understand the benefits available under the plan – before and at Maturity.
- Check the Lock-in period and applicable surrender charges.
- Provide true and complete information in the proposal form.
Courtesy : SBI Life