Many people don’t bother with life insurance, savings or thinking about the distant future at the beginning of their working life. It is not beneficial in the end, rather it becomes very difficult to make new plans as you get older. So no matter how lazy or think that I will get life insurance next month, it is necessary to get insurance today instead of relying on the future.
Many people don’t bother with life insurance, savings, or thinking about the distant future early in their careers. It is not beneficial in the end, rather it becomes very difficult to make new plans as you get older. So no matter how lazy or think that I will get life insurance next month, it is necessary to get insurance today instead of relying on the future.
But which life insurance is right for you? And which insurance scheme will you get good returns? All of this has an easy way out. For example-
1. Know which insurance is necessary
The most important thing to keep in mind while buying insurance is that you need life insurance to protect certain things. If financial protection of the family is the main goal, then one can opt for term insurance plan. This will give you more coverage, but not a problem in your pocket.
If you want to get insurance for your child’s education or to buy your dream home, opt for a unit-linked insurance plan. If you want to spend your post-retirement life very easily, you can also opt for retirement schemes.
2. Calculate the required amount of insurance
According to financial experts, life insurance should be at least 10 to 15 times of a person’s annual income. Not only this, if you have taken a loan, think about the monthly EMIs. Apart from this, choose life insurance only after thinking about major expenses like child’s education, marriage etc.
So check the following points but proceed-
- Calculate the annual income of your family and how many years of income you will need.
- Interest – Calculates how much you actually owe and how much it will cost you to pay off a mortgage if you have one.
- Estimated amount of money you will need for children’s education and marriage etc.
3. Payment of premium-
You can easily calculate how much money you can pay for the premium, or how much money you have to pay, by using an online calculator through the Internet. Different insurance companies have different types of insurance plans. Compare them and see which one is most profitable and pocket friendly for you. Calculate how much your income will be in the coming year and which insurance will get you the most coverage.
4. Understand policy terms-
Choose a term policy based on how many years your family will be financially dependent on you. The easiest way you can do this is to choose a term policy till the age when you retire or move away from fixed income.
5. Check which company to get insurance from
You can go ahead with insurance companies that have a Claim Settlement Ratio or CSR above 95% over the past years. CSR will help you understand how many claims an organization receives throughout the year and how many claims are settled, and the success rate.