Figure out what you are looking for, tax benefits (best and assured returns only), some risk cover for you or your family (in case the worst happens), or mostly long term investment (Child / Pensions etc)? Here we advice linking to market, as long term market mostly return higher than fixed. For short term we advice fixed returns.
Once you decide what and how much you wish to invest. This is a balance between how much you wish to invest and how much cover or return you expect.How much do you wish to invest / what is your capacity to invest? Get some benchmarks based on your income from a broker.
What is a sensible cover for you? Again speak with a broker / advisor.
Once you are clear about the above two, explore the companies that provide policies you are looking for. This is available at aggregators or brokers only. Never buy from an agent, they will sell one company only.
Check out the hidden costs, especially in investment products like ULIP where there may be allocation charges, handling charges etc. Ask a broker for help.
Always buy from a broker, ask for their license number, and check it on the IRDA website. These brokers are independent; they get paid as per the policy they sell, so they are not inclined to push one over the other. An agent on the other hand sells just one company, and hence will always push that company and its benefits.
Insurance is not just a tax saving instrument, it protects the financial aspects of you and your family against any mishap, so plan properly.
Early investment in Insurance will reduce the premium cost, yet you will get the same coverage. For eg. buying life insurance at 20 is cheaper then buying at 35.
Premiums become costly if you use tobacco and alcohol, give it up, it will help retain good health and help reduce the premium.
Be truthful and accurate in your declarations on the proposal form. That will ensure the payment when you have a genuine claim.
There is a lack of information in the market, so put everything in writing, or check it on a reputed website. Never trust anyone, unless it is documented, and or you have an audit trail.