Process of Buying the Best Life Insurance Policy

Buying life insurance is a step by step process. If you are aware of the process it will help you to buy the right life insurance policy which will be as per your need and requirement.

Let us look at the various steps involved in buying the Best Life Insurance Policy

• Analyze the type of life insurance and the amount of cover you need

There are different types of life insurance policies available in the market and choosing the right one depends on your motive of buying a life insurance plan. For example a term insurance plan is a pure life insurance plan with no maturity benefit while a Unit Linked Insurance Plan gives you the option of investment in addition to cover. So understand the benefits of different life insurance policies and choose according to your need.

Choose the amount of cover for your life insurance policy as per your need. Both the cases of underinsured and overinsured are not good for your life insurance policy. In case of underinsured, you will not get the right benefit while in the case overinusred, your life insurance policy will become a financial burden for you. Choose the amount of cover on the basis of your asset, debts, lifestyle, income and future obligations.

• Search life insurance plans, according to your need

Every life insurance policy available in the market offers you different benefits and flexibilities. Search for life insurance policies, according to your need. Like which riders you need, how much renewability age you need, whether you need cover for accident or not, etc. Need based search will help you to cut the time spent on browsing for policies which you don't need.

• Select the best insurance plans available and compare

Pick up some of the best life insurance plans and compare them through an IRDAI certified insurance web aggregator which provides a quick, easy and unbiased result for comparison of different life insurance policies. Comparing different polices is very much necessary to get maximum benefit from a life insurance policy at an affordable rate.

• Choose the right insurance plan and go through its brochure

Select the right life insurance policy from the pool of best policies and go through its brochure to have a better understating of the terms and condition of your policy. A well understood life insurance policy will help you to avoid any hassle in future and you will also be able to take advantage of your policy.

• Complete documentation and make payment

After selecting the policy, complete the documentation by submitting KYC documents like id proof, passport size photo, adhar card, pan card etc. You also need to submit the proposal form after filling it with honesty (any misleading information can lead to cancellation of your policy at the time of making claim) and then make the payment through various options like debit card, credit card, cheque, etc.

• Wait for company's decision

After making the payment, you will have to wait for the company's decision to approve your life insurance policy, after which they will provide you with the policy documents.

It is important to provide a financial security for your loved ones and meeting all your financial objectives by buying a suitable life insurance policy in a systematic manner.