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Five important point to remember before insurance policy purchase

1. Human Live value- Life insurance is must have to secure financial needs of our loved ones. But purchasing adequate sum assured (risk cover/ life cover) amount is paramount. Human Life Value (HLV) calculation let us know the approximate amount of required insurance for a particular individual as per his or her income and liabilities.


2. The next important point is the objective of the insurance purchase or in other words, what is the goal of buying insurance. Various goals can be, pure term insurance, tax savings, savings + insurance, retirement etc.


3. Once the goal is clearly defined, next step is to find and compare various available plans. One can go to maturity calculator available on this website to compare various LIC policies.


4. Affordability- As an individual progress in his life, earning and expenditure varies. Insurance policies are generally long term plan, so it is important to assess the portion of amount which can be continuously paid for the policy. Stopping or closing (surrender) an insurance policy prematurely leads to substantial loss.


5. Claim settlement Ration and insurance company profile is another key aspect to consider an insurance policy purchase.