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Things to know before signing insurance proposal.

It is a well-known fact that Indian customers are value centric at home or abroad. We all look at maximizing the value for the price we pay. But when it comes to buying an insurance Indians are quite opposite. A typical question would be where should I sign? This reaction is true in all classes of people.

The harsh realization occurs only after few years of purchasing the insurance policy. The policy holder understands that the policy he purchased does not match his requirement. There exists inertia that is preventing customers from understanding the basics of life insurance. The insurance in India is seen as an instrument to save tax, other benefits are overlooked.

This inertia by the customer is increasing in dissatisfaction, high surrender rate and grievances among the policy holder. Many of us fall prey to unrealistic projection shown by the insurance agent. The problem of mis-selling is also increasing the dissatisfaction and makes policy holder feel cheated. A major portion of the policy holders are paying for their shear laziness and careless attitude while purchasing the insurance policy.

Here are the things you should know before signing insurance proposal form:

1. Atleast know the major benefits of the policy. Analyze whether that policy suits your family.
2. Check if it is market linked plan or non-linked plan. If it is market linked please know the risks associated with it.
3. Check if the plan is regular premium or single premium.
4. Confirm the term, premium paying term.
5. Know about death benefits, medical cover, maturity benefits.
6. Verify the plan by searching it on internet.
7. Know the lock in period.
8. Know if the policy has loan option and surrender options.
9. Check the credibility of the agent.
10. Know your servicing branch.
11. Inform you nominee about the insurance policy you brought.
12. Please disclose all the details of your occupation, health condition correctly. This will help you in easy claim settlement.


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