Important Things to Keeps in Mind before Buying a Policy

Buying an insurance policy can be a daunting task. The insurance market is flooded with hundreds of insurance companies and their numerous products. As a result, most of the buyers who are looking forward to buying a policy depend on their agents who guide and assist them. Deciding on the right policy is possible with help from the agent. It is important to note that the right questions which you ask the agent can speed up the decision-making process.

Read more
kapil-sharma
bajaj allianz life insurance
loading...
icici prudential life insurance
loading...
max life insurance
loading...
Investment Plans
  • money
    Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax
  • tax
    Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
  • compare
    Compare & Choose 30+ Plans and 150+ Fund options
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold

Top performing plans with High Returns**

Invest ₹10K/month & Get ₹1 Crore# on Maturity

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Additionally, you must be clear about the policy features, benefits, and details before you invest in one which requires you to bring up relevant questions before buying the policy.

What is the Coverage Offered by the Plan?

When you shop around for an insurance policy, you must take a look at the coverage. Insurance coverage can be defined as the liability or risk which is covered for an entity or an individual by way of insurance services. To understand the coverage you can ask your agent whether it is a critical-illness plan or a daily hospitalization plan in case of health insurance plans. The coverage will differ from one policy to another. Say for instance Apollo Munich’s Optima Vital covers 37 critical illnesses whereas HDFC Ergo’s Critical illness Platinum covers 15 critical ailments. Get a clear picture of a policy’s coverage before buying one. The biggest mistake which you can make is to assume that all the policies are the same. 

Get the Insurance Agent’s Help

Insurance sellers today offer an insurance needs analysis calculator which requires the buyer to fill in personal and financial details. The needs analysis calculator reveals your insurance needs. Although these calculators are useful it is essential to note that they are not tailored according to your specific needs. This is where you will need an insurance agent’s help. By asking him pertinent questions you will be able to assess the coverage which you need in a more comprehensive manner. The insurance agent will inform you about the coverage which you need.

Gathering Information on the Insurance Options

Instead of the agent making the choice for you, you can ask him to familiarize you with the plans. You can ask him about the pros and cons of the plans. For instance, a term plan may prove ideal if you are on a tight budget whereas if you have a long-term goal and are ready to shell out the high premium, an endowment plan may be a better choice. You can take the right decision when you know what a policy entails. Asking relevant questions about the plans is important as the agent may have limited knowledge about your financial needs.

Finding Out How the Insurance Company Is Rated

Before you take a pick from the array of policies offered by insurance companies , it is important to check the company’s financial structure. Take a look at the annual reports. The annual reports will give you an idea of what the company does, the policies it offers and also helps ascertain whether the policies cater to the investor’s interests. The insurance agent must have a valid license which authorizes him to sell insurance. The license should be an IRDA license. It is advisable that you do not share your personal details and documents before verifying the license.

Get Your Queries Clarified

Ask the agent clearly about the premium which you will have to pay. The premium will primarily depend on your age. It may also vary between men and women. Your premium will be high if you suffer from a pre-existing disease or smoke. Check about the frequency of the premiums. Are you required to pay the premium once a year, half-yearly or every quarter? In case you miss paying the premium, will you have to pay a late payment fee? Additionally, get clarifications on the maturity amount. Find out how much will be paid out to the nominee in the event of your death. Ask the agent whether besides the sum assured, are there any additional bonuses.

This sums up the important questions which you must bring up before buying an insurance policy. Narrowing down on the most appropriate insurance plan is easy when you take an informed decision.

You may also like to read: Checklist On Buying Life Insurance

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-12-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

Become a crorepati-1
Invest More Get More!
You Get
₹1 Crores*
You Invest
₹10K/month
You Get
₹80 Lakhs*
You Invest
₹8K/month
You Get
₹50 Lakhs*
You Invest
₹5K/month
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Investment plans articles

Recent Articles
Popular Articles
ICICI Compound Interest Calculator

20 Nov 2024

The ICICI Compound Interest Calculator is a valuable financial
Read more
Types of Investment

14 Nov 2024

Investing is a powerful tool for building wealth, securing
Read more
Different Types Of Bonds

11 Nov 2024

Bonds are a type of investment where the investor can invest
Read more
Annual Percentage Rate (APR)

11 Nov 2024

Annual Percentage Rate (APR) means the interest rate you will
Read more
Investment Horizon

11 Nov 2024

An investment horizon is the time you plan to hold an investment
Read more
30 Best Investment Options in India in 2024
  • 04 Apr 2014
  • 1863736
Are you looking for the best investment option for you? From traditional investments like Fixed Deposits (FDs)
Read more
Best NRE Savings Accounts for NRIs in 2024
  • 28 Jan 2022
  • 68165
India is a growing economy and is getting a lot of global recognition these days. It has shown immense growth in
Read more
Short Term Investments Options
  • 10 Feb 2014
  • 517414
Short-term investments are financial assets that can be easily converted to cash within a short period, ranging
Read more
Post Office Senior Citizen Savings Scheme (SCSS) 2024
  • 13 Feb 2020
  • 98540
The Post Office Senior Citizen Savings Scheme (SCSS) is a government-backed scheme designed specifically for
Read more
Best Saving Plans in India 2024
  • 30 Jan 2019
  • 149756
Saving money is an important step towards achieving financial independence and security. Whether you're looking
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL