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In insurance, a stitch in time can save nine

The best way to compare two insurance plans for charges is to look at the benefit illustration. This is a projected return at a rate as stipulated by the insurance regulator Irda over the term of the policy.

June 25, 2015 4:22 IST | India Infoline News Service
insurance, insurance policy, Life insurance
In insurance buying, nowadays you have numerous tools to check, recheck and compare a scheme before you finally decide to buy it. There are websites and apps to compare similar plans being offered by two insurers, so that you can get the best deal.
 
The best way to compare two insurance plans for charges is to look at the benefit illustration. This is a projected return at a rate as stipulated by the insurance regulator IRDA over the term of the policy. The policy with the higher corpus at the time of maturity is the policy that is overall costing you less.
 
Once you have chosen the policy you want to buy, it is very important that you actually take the time to fill in the proposal form yourself, or at the very least review the proposal form that is filled for you by either your agent or financial adviser. This is critical. First because when you need to lodge a claim or when the time of availing the benefits come, a little mistake at the time of filling the form can cost you dear.

Make sure details regarding your lifestyle, health status and current insurance details are accurately filled. Please remember that making an accurate declaration is in no way an impediment to the issuance of an insurance policy.
 
Ensure that all your contact details like address, telephone number, mobile number and email address are accurate. This will enable the company to speedily communicate with you before and after the issuance of the policy.
 
In the case of a unit-linked plan please also select the fund with care. Most unit-linked plans provide options from high-risk equity funds to conservative secure funds. Choose according to your risk appetite.
 
Once your policy is issued please look at your policy document and scan it for any factual discrepancies such as your name, address etc. Once you are convinced that the document is accurate, please store it in a safe place. While storing it also please inform your nominee (nominee’s guardian if a minor) of the location of the policy and it’s details such as the sum assured etc.
 
After issuance if your contact details change please update the records of the insurance company. This will ensure that all communication regarding your policy reaches you on time. Non-receipt of a premium renewal notice and resultant non-payment of premium can cause your policy to lapse.

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