Insurance may be defined as a legal contract between the Insurance Company and the policy holder, where an insured person promises to pay his regular premium to the company and the insurance company assures to pay a sum of money in exchange for that premium, upon the death or critical illness of the insured person. It is one of the basic requirements in one's overall financial plan. Basic knowledge of life insurance premiums, premium payment frequency, discounts offered etc. is necessary to choose and maintain your life insurance policy.
The main motive of the Insurance policy is to provide financial security to its policyholder. Due to continued inflation, it is must for every individual to save money. Many insurance policy holders may not be contented with their insurance plans; the main fault here is the gap, which always exists between insurance companies and customers. This gap is known as Unawareness, and due to this lack of knowledge, many people lose their invested amount and many companies are also losing their goodwill in the eyes of the customers. So, it is important to know the basic concept of insurance plans before investing into them. Here are some of the points which will help you to organize your Insurance plans and run an Insurance policy smoothly;
Know the Company: - There are lots of insurance companies in India; both public sector and private sector companies. LIC is a public sector company and most of the people are willing to invest with them. This is because many people don’t trust private sector companies, but they are not affirmed with the fact that private insurance companies offer best of the plans to their customer. If you are willing to buy an insurance plan then you must enquire, if the company is registered with IRDA (Insurance Regulatory and Development Authority of India) or not. You can check these registered Insurance companies on the official website of IRDA.
Ask Question to Financial Advisor: - You are the owner of the policy and this is your right to ask anything about the policy from your financial Advisor. Don’t rely on the oral agreement; check all the minor details of the plan on the brochure as well as on the internet. You can also make queries at the customer care numbers of different companies.
Know Plan Type: - Before taking an insurance plan, you should understand your need. Below given are some types of insurance Plans;
a) Term Insurance: These plans provide only life cover, with no profit or savings with low cost premium.
b) Unit linked Insurance Plans: It provides investors both investment and insurance under a single integrated plan.
c) Money back policy: These plans offer the money back facility to their customers after a specific period of time.
d) Endowment plans: These plans are designed for those customers who want a lump sum amount after a specific time or term.
e) Whole life Policy: In the whole life policy, people can enjoy life cover for the whole life.
Know time tenure: - It is important to know about the policy terms and premium paying terms. You can also check; bonus, maturity time, and all the important things in the policy bond.
Benefits to customers: - Each insurance company offers free look period to every individual. If you are not satisfied with your insurance policy, you may cancel your policy within fifteen days after receiving the policy bond.
Taking a life Insurance policy provides security and saving both. A lot of Insurance companies are listed on Grotal; you can check the details of Insurance companies nearby you.