Life has a way of dealing unexpected twists and turns, just when things are going well. You anticipate certain events, while others are complete surprises. Whatever the unexpected incident may be, it helps to be prepared for it. The best way to do this is to buy life insurance.

But before you buy life insurance in India, do consider the following 3 factors:

#1 Buy directly from the insurance provider.

  • Buying life insurance in India has now become so easy, that there is really no need to enlist the help of an insurance broker. You can buy life insurance online after filling out an online application form on the insurance provider’s website.
  • As part of the purchase process, you might have to undergo a medical test at an empanelled clinic or hospital in your area. Some insurance providers also send technicians to the buyer’s residence to collect blood and urine samples, as also check blood pressure, weight, take ECG, etc.
  • The biggest advantage of buying the life insurance policy online, especially for those in their 20s, is that the premiums are lower than if you were to buy an offline policy.
  • Once you pay the first premium online, the policy is deemed active and the document is sent to your residence and also e-mailed to your inbox.

#2 Determine the kind of life insurance you require.

When you set out to buy life insurance, you must know which kind of policy you wish to purchase. This decision is marked by your age and financial goals. You can buy these kinds of life insurance policies:

  • Endowment plans
  • Market-linked plans, like ULIP
  • Money back plans
  • Pension plans
  • Child insurance plans
  • Term life plans

Each has its merits, but the one you purchase must match your financial outlook, have affordable premiums, and offer benefits to your loved ones in your absence.

#3 Study the policy document for full list of inclusions, premiums and sum assured computations, and any unique terms and conditions.

Leading insurance providers present all the relevant information about each life insurance policy on their websites and smartphone apps. There are online calculators and chat bots available for you to get your queries about the payments answered. But do download the policy document from the website and study it carefully. It lists the premium calculations, projected sum assured pay-out, pay-out and premium payment modes, inclusions and exclusions, claims process, etc. The document lists all the information about the plan, so read it carefully before buying.