- Choose adequate coverage
- A common guideline is coverage equal to 10–15 times your annual income, but your actual need depends on factors such as outstanding loans, family expenses, children's education, and your dependents' future financial needs.
- The goal is to ensure your family can maintain financial stability if you're no longer there.
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Select an appropriate policy term
- Ideally, the policy should cover your key earning years and major financial responsibilities.
- Many people choose coverage until age 60–65 or until major liabilities (home loan, children's education, etc.) are expected to be completed.
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Check the insurer's claim settlement record
- Review the insurer's claim settlement ratio and overall claims experience.
- A strong track record can provide confidence that claims are handled efficiently when beneficiaries need them.
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Disclose all information honestly
- Declare your medical history, smoking or tobacco use, occupation, lifestyle risks, and existing insurance policies accurately.
- Non-disclosure or incorrect information can lead to claim disputes or rejection later.
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Compare features, not just premium
- The cheapest policy is not always the best.
- Compare policy features such as critical illness riders, accidental death benefits, waiver of premium options, payout flexibility (lump sum vs. income), and policy exclusions.
- Make sure the benefits align with your family's needs.
Additional tip: Buy term insurance as early as possible. Premiums are generally much lower when you're younger and healthier, and you can lock in those rates for the entire policy term.
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