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Latest articles on Life Insurance, Non-life Insurance, Mutual Funds, Bonds, Small Saving Schemes and Personal Finance to help you make well-informed money decisions.
The reasons for buying an insurance policy are plentiful but which out of these abundant reasons dominates the actual purchase of a policy. First and foremost it is important to understand that a life insurance policy is an essential component to ensure a safe and secured tomorrow for your family. It is one of the strongest reasons for any individual to opt for an insurance product. However, many individuals get confused before making their actual pick. To help you in zeroing in on a policy, we have provided you with some easy tips.
1. Key out your needs: Before you make your choice of buying a particular policy, it is important to analyse your needs. For example, if you have more dependents on you, then the need for the policy protection also increases. If the dependents on you are few, the need of the policy would vary accordingly. Besides, after a stipulated period if you want to get a lumpsum amount that you want to put into different use, you can decide the policy that suits your purpose.
2. Which policy to consider: If you intend to have only a pure risk cover, a term policy should suffice the need. You get protected for a higher cover at a low premium. This insurance policy is in contrast to other saving plans, which include endowment, money back, whole life and ULIP policies. These plans are so called because of the maturity returns that are given at the end of the policy term.
3. Time to take action: After having quantified your insurance needs, your next step is to approach your insurance advisor, take his help in making decisions if needed and purchase the policy. His/her understanding of the various policies and its workings will help you gain better knowledge of the products. And he would have more updated details that will help you take informed decisions.
4. Comparative study: Before buying a policy, a comparison of various other plans will be helpful to you. Today’s world being a technology driven one, with just few clicks you can access a variety of products spread across various other companies. Or else your insurance advisor can help you with a complete analytical work.
All said and done, an insurance policy is an indispensable element in an individual’s life. A little analysis of the existing policies is important, for you should know where your hard earned money is getting invested. An insurance policy protects you and your family from the uncertainty of life and gives the much-needed financial support in the event of your permanent absence. It’s just the right tool to get your financial concerns in focus that will help you and family stay protected for life. Just imagine this situation if you were to die, could your family or dependants continue living the existing lifestyle, pay for the existing debt and loans? If the answer is no, then there is no reason as to why you shouldn’t be covered without an appropriate insurance policy.
This question needs to be answered by an individual and therefore it would be right to trail off this article here.
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