Article

Procedure: How to Buy Term Insurance
January 30 , 2013
  1. Term policy is the only good insurance policy around - it gives your family a good cover, at a very low premium. All life insurance companies have a term policy. Ask for it even if the agent tries to avoid it.
  2. Other insurance products combine insurance with investments. This is very bad for you, and you end up losing money in most cases.
  3. Deciding on the policy itself is easy just go for the one that offers lowest premium for your age and insurance amount.
  1. Most insurance companies have online term policies. Premium on online policies is approximately half of that on offline term policies. Online policies can be filled up on the company's website. If doing offline, the agent will get you the proposal form to fill.
  2. It is a bit lengthy, but make sure you fill it accurately and not leave it to the agent to fill in any parts for you. Any mistakes or wrong information here could affect your claim later.
  3. You will be told the premium you need to pay. Hand over the cheque of the specified amount to the agent.
  4. In addition to the form, you may need to hand over a photograph, income proof, proof of identity and proof of address.
  1. Agents are known to promote no medical test as if it is a big benefit for the customer. However if you have no medical test in your insurance policy, it means you aren't covered enough. This is something no agent will tell you. You should not only be prepared for a medical test, you should in fact welcome it!
  2. You will be referred to a medical test lab for basic ECG and blood tests. This is not charged from you. Medical test report is sent to them.
  1. If your medical test is normal, you should receive the policy document by post in 10-15 days. If there is some issue with your medical test, you may be asked to pay a higher premium
  2. Do go through your policy carefully to check for any mistakes
  3. Subsequent year premiums can be paid by cheque

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