SBI life insurance has come out with an ad which says – here is a list of 10 most important things that you should see before you buy life insurance. I am not getting into whether it is the correct 10 or there could be a better 10.

My take is – this is a typical motherhood statement that advise is accused of. Completely correct and mostly useless UNLESS you understand what it means.

Let me list the following for a start – will elaborate later on:

1. Analyse and ensure that the plan meets your insurance needs and long term financial goals

2. Is it a Unit Linked or Traditional?

3. Understand risk factors, terms and conditions, of the plan and read the sales brochure carefully.

4. See whether it is a single one time payment or a regular plan.

5. Confirm the premium payment and frequency

6. Check the benefit illustration

7. Confirm that the term is appropriate

8. Check the lock in and the surrender charges and its applicability

9. Understand the benefits available – before and post maturity

10. Provide true and complete information while filling up the form.

each one is correct, not understandable and useless for the end user.

It is useful for the professional in the field….perhaps ….but then he may already know it.

It is useful for people like me to write about on my blog for sure….


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  1. The main reason why people buy insurance is to SAVE TAX. just to get that 1,00,000 saved, they are ready to invest in any insurance plan. i work in government sector, where many uncles and aunties here have insurance for same purpose, strangely many don’t even know what is their REAL INSURANCE COVER. tax saving + they see that they will get more than they are paying. many dont even know mutual funds. sir my question is how to convince such people? is there any better alternative for tax saving for them???

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