What kind of Things to Think Before Buying Life Insurance

Keep these 5 things in mind as you go about your life insurance buying decision:

1. Buy for the Right Reason

Understand the purpose of purchasing insurance. Remember that you are purchasing insurance to plan for certain goals, cover your life, and secure the financial future of your dependents. Do not purchase insurance solely for ancillary benefits such as tax savings.

2. Amount of Life Cover

The premium amount is determined by the quantity of life insurance that you choose. As a general rule, you should have at least 10 times your annual income in life insurance coverage. You may also use our premium calculator to get a premium estimate.

3. Policy Tenure

The appropriate term for your Life Insurance Policy should be your 'Retirement Age minus your Current Age'. This means that if you are currently 35 years old and want to retire by the age of 65, your insurance tenure should be 30 years or more. Popular term plans, such as Max Life Smart Term Plan (UIN: 104N113V04; A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan), provide long term life insurance coverage until the age of 85.

4. Additional Coverage & Benefits

Add-ons are benefits that are provided in addition to the base coverage, such as a critical illness rider, accidental death benefit rider, premium waiver rider, disability rider, and so on. These are useful extras that can be added for a small fee.

5. Credentials of the Life Insurance Company & its Claims Experience

Before buying a life insurance policy, it's important to assure yourself about the credentials of your chosen life insurance company.

Claims Settlement Ratio -This refers to the number of claims paid by an insurance provider for every 100 claims registered. Max Life paid 99.51% of individual death claims in FY'22-23 (Src. Individual Death Claim Paid Ratio as per Audited Financials for FY 2022-2023).

Assets Under Management (AUM) - This refers to the current market value of the money managed by the financial services firm. A greater AUM indicates that the portfolio is solid and performing well.

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Solvency Ratio - This is a ratio used to assess a company's financial soundness. It reflects the firm's ability to pay off long-term debts. A greater solvency ratio indicates that a corporation is well-positioned to pay claims. Max Life has a solvency ratio of 207%, which is more than 1.38 times the required 150%, indicating a solid and stable financial situation.

In addition to these, customer service quality, reviews, and corporate governance standards provide critical information about the company's overall success. Learn more about Max Life as an organization by reading on. You can also look at the many sorts of plans available.

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