How to buy the right policy

Gaurav Suri
16 September 2005

Life insurance is generally a long-term commitment. Hence, before buying any life insurance product, be sure to read the policy carefully and get answers to any questions you may have. Ask yourself:

1. How much insurance do I need? During my absence, what would my spouse and dependents need in order to live comfortably? Do I have adequate asset to cover their needs now and in future?

2. In addition to the protection, what am I trying to gain through my life insurance. Am I accumulating funds for the education costs for the children or do I need some additional supplemental income for my retirement or emergencies?

3. How much can I afford to pay for the policy?

4. Is the insurance company I am considering financially secure? Does it have a good claims payment history? Good customer service and competitive pricing?