How to Buy

There's no thumb rule on buying insurance; it depends completely on every individual's financial goals, income profile and risk appetite.

However, here are a few basic rules you should keep in mind before you buy an insurance product.

  • Buy insurance only from a licensed company
    Buying life insurance is like buying future financial security for your family. Hence when buying insurance, ensure your policy is provided by a licensed company. The list is available on this website too.

  • Buy insurance only from a licensed agent/ intermediary
    Buy insurance only from a licensed agent/ intermediary who is licensed to sell Life Insurance Products. You can ask for the license before you actually buy the policy.

  • Shop around
    Seek premium quotes and proposals from various insurance companies and do a comparative study. Different policies offer different benefits, so choose one that suits you the most. Cheapest is not necessarily the best.

  • Understand the scope of cover, terms and conditions of the policy
    Make sure you have a complete understanding of all necessities such as the terms and conditions as well as exclusions in the policy. If necessary, do not shy away from asking for explanations from the insurance company.

  • Avoid unwanted additional coverage
    Do not be pressured into buying 'packaged' products, as they often contain fixed coverage's you don't need. However, you may opt to add additional coverage or riders of your choice at an additional premium which offers value for money. Your financial commitment should be in tune with your financial condition.

  • Get the right life insurance policy
    Carefully study your agent's recommendation to make sure the policy is what you are looking for. The benefits should match your needs.

  • Check the date the insurance becomes effective
    The date the insurance goes into effect may be different from the date the company issues the policy. Ensure you ask your agent when the insurance becomes effective.

  • Fill in your application carefully
    Never sign blank proposals or application forms. Ensure all information filled in your application is complete and correct to avoid delays or even denial of claims at a later stage.

  • Health related particulars
    Life Insurance is a contract of utmost good faith where the responsibility of disclosure of material fact vests with the buyer. Please ensure that all questions relating to family history, personal health are answered with utmost care. Any concealment or non disclosure of material facts could jeopardize claim to your nominees.

  • Age and Address Proof
    Regulations require proposal forms to be accompanied by authentic age and address proof. Kindly ensure that acceptable proof of age and address are submitted with proposal form.

  • Ensure premiums are paid to your insurance company
    Make sure your cheque or money order is made payable to the insurance company and not to your agent and insist for a receipt immediately as proof of payment.

  • Read your policy when you receive it
    Life policies have a 'free look' period of 15 days from the date you receive it. Use this opportunity to make sure this is the right policy for you. In case the policy document contains any condition which was not explained to you by the agent or intermediary, you have the right to return it to the insurance company and ask for refund within this period.