While conventionally life insurance products have been bought for the tax sops (under Section 80C) they offer, there is much more to life insurance. Purchasing a life insurance policy is a very important exercise for all individuals. A life insurance policy helps the nominees in indemnifying the financial loss in case of an eventuality. Besides, the policy can also act as a savings product and help in accumulating a corpus over a period of time. Before purchasing an insurance policy, one should be cautious about:-

1. Focus on your needs and your risk profile

IRDA's reducing the Capital Requirements for Insurance companies to sell term policies will result in an immediate fall in the rates of term plans, making them much cheaper than the current prices.
While a few Insurers like Kotak & Religare have already revised the rates downwards , most others are expected to follow suit, soon.

Experts say that the similar trend would be seen in the Endowment policies also, but with a certain lag.

Compare Term plans | Don't Know about the Types of Life Insurance Policies? Read here