Before buying Life Insurance, ask who needs financial support, how much cover is appropriate, how long it should last, and whether the premium is sustainable. Then check the benefits, exclusions, disclosure requirements, and cancellation rights in writing. A policy should fit your family’s needs and your ability to maintain it.
Who am I trying to protect and for how long?
Identify the people who depend on your income or unpaid work and the commitments that would remain if you died. The purpose of life cover is to address that financial gap. Start with dependents and obligations, then consider the period over which they are likely to need support. Write down household expenses, outstanding Loans, children’s education, and support for dependent parents.
Include the cost of replacing caregiving or household work. Ask what changes when a Loan ends or a child becomes independent. Employer-provided cover also needs checking: what happens to it if you leave that job?
How much life cover do I need?
Estimate the money required for debts, future goals, and family support, then deduct assets genuinely available for those purposes and relevant existing life cover. This is a planning starting point, not a fixed salary multiple. Check affordability and eligibility separately before choosing the sum assured.
Illustration only: ₹30 lakh of debts plus ₹20 lakh for goals plus ₹60 lakh for family support, less ₹10 lakh of available assets, and ₹20 lakh of existing cover, gives an indicative gap of ₹80 lakh. The arithmetic is illustrative, not a quote. Do not deduct a family home unless selling it is a realistic plan. Revisit future costs and the period of support with a qualified adviser.
What does this policy pay and when?
Ask for separate explanations of the death benefit, any survival or maturity benefit, and the conditions attached to each. Do not assume that every life policy returns premiums if you survive. Match the promised payment to the event, the amount, and the timing shown in the policy documents. Request the applicable benefit illustration and read it alongside the brochure and specimen policy.
If the proposal includes savings benefits, ask which payments are fixed contractual benefits, and which depend on future declarations. Illustrated amounts are not automatically payable amounts. Have the insurer explain the exact option you are selecting, rather than a different example shown in a presentation.
Can I afford the premium throughout the payment term?
Check the total payable amount, payment frequency, and number of years for which premiums are due. The premium payment term can differ from the period of Insurance cover. A payment you can manage today should also fit a realistic household budget during periods of lower income or higher expenses. Ask for the actual instalment quote. An annual premium divided by twelve is not necessarily the amount collected each month.
Check whether the selected premium is fixed or can change under the contract, and whether optional benefits carry extra costs. Keep space in your budget for essential expenses. Do not rely on uncertain future income to maintain the policy.
What is excluded and what must I disclose?
Ask for the exclusions and limitations in the base policy and in any optional cover, then answer the proposal questions accurately. Health history, tobacco use, occupation, and other requested details can affect underwriting. A medical examination does not replace your responsibility to provide the information sought in the proposal. Check whether optional benefits have waiting periods, specified definitions, or limits.
Ask the insurer to explain the suicide clause applicable to your policy, including its treatment after revival. Never sign a blank proposal. Review answers entered by another person and keep a copy. If you notice an error, seek a written correction promptly. See the disclosure guide linked below for more detail.
Read the proposal disclosure guide
When will my cover actually begin?
Ask for written confirmation that the insurer has accepted the proposal and identify the commencement of risk in the issued contract. Submitting an application or making a payment does not, by itself, establish that the cover you requested is active. Any revised underwriting terms should be understood before acceptance. Keep your application reference, receipts, and acceptance communication together. Check the issued sum assured, policy term, payment term and selected option.
If these differ from your request, contact the insurer immediately. The application process guide explains the documents and steps without substituting for the insurer’s decision.
Read the life insurance application guide
What happens if I miss payments or want to exit?
Ask the insurer to explain the grace period, the status of benefits after it expires, and the conditions for revival. For Life Policies, the regulatory grace period is 15 days for monthly premiums and 30 days for quarterly, half-yearly, or annual premiums. Risk cover continues during that period subject to policy terms. Beyond the grace period, consequences depend on the policy and premiums already paid. Ask whether benefits lapse or reduce, what revival requires, and whether any surrender value exists.
Obtain a year-wise exit illustration where applicable. Surrender value is not the same as a refund of every premium. Do not assume stopping an automatic payment cancels the contract on favourable terms.
Can I cancel after receiving the policy?
For a Life Policy with a term of at least one year, you have 30 days’ receipt of the policy document to review it and request free-look cancellation. A refund can involve permitted deductions for the cover already provided, medical examination expenses, and stamp duty. It is not necessarily a full refund. Record the receipt date and compare the policy, proposal copy, benefit illustration, and Customer Information Sheet. The sheet is a summary, so read the full contract for complete terms.
If there is a mismatch, seek written clarification while the review window remains open. Use the official cancellation channel and retain the acknowledgement rather than relying on a verbal assurance.
What should my nominee know before I buy?
Ask how nomination is recorded, how it can be updated, and how a claim is notified. Your family should be able to find the policy and insurer’s contact details when needed. A clear record of cover, payments, and claim instructions can reduce avoidable confusion during an already difficult time. Check the nominee’s name and details in the issued policy. If nominating a minor, ask about the appointee requirements. Give your family access to policy information without sharing account passwords or one-time passwords.
Ask for the claims’ checklist and grievance contacts. Claim requirements and entitlement remain subject to the policy and applicable law.
How can ABSLI help me check the proposed policy?
You can ask ABSLI for the prospectus, applicable benefit illustration, specimen policy, and an explanation of the proposed cover through its official channels. After issue, check the policy pack and Customer Information Sheet against your request. Ask for written answers to unresolved questions before making a decision. Keep the discussion tied to your selected benefits, premium commitment and exclusions.
If an explanation and document appear inconsistent, ask which contract clause applies and request correction where appropriate. This article does not recommend a particular plan or establish your eligibility.
October 9, 2026
5 mins
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