Life Insurance: How to choose

Follow these steps to choose a life insurance with confidence.

1. Start with the goal. Is it protection, savings, children’s future or retirement? Different plans fit different goals.
2. Estimate cover needed. Use the life cover calculator to account for income, loans and goals.
3. Separate protection from investment. For most families, a term plan for protection plus separate savings is the most transparent.
4. Compare costs. Check premium allocation, mortality and fund charges on ULIPs; compare guaranteed returns on traditional plans.
5. Look at claim handling. Check claim settlement ratio and time taken, plus how claims are made.
6. Read the free-look terms. You have a free-look period after receiving the policy to review and cancel if unsatisfied.

Questions to ask before you buy

• What is excluded or limited, and for how long?
• What exactly is guaranteed and what is not?
• How are claims made, and how long do they usually take?
• What happens if I miss a payment?
• Can I cancel in the free-look period, and what is refunded?
• How will this plan change as my life changes?

Use our tools

Life Cover Calculator Insurance Gap Checker Tax-Saving Estimator Policy comparison scorecard