Getting familiar with advantages of Life Insurance
Why more people select Insurance coverage? Well, Life insurance provides with below mentioned advantages.
- It provides you with Insurance coverage, for your life time.
- It provides consumers with saving plans, for long term
- Consumers can make their planning, for entire life.
- It also offers consumers with benefits, on Taxation.
General points to get familiar with prior to purchasing Insurance coverage
Before opting for life insurance plans, to compare insurance policy , you need to be familiar with following points.
- How important is Insurance coverage, for your financial plan?
- Is it only meant to help you cover the risk involved in finance?
- How much money should you invest in the insurance coverage to offer with complete financial security to your family during my absence?
- What are the overall points that you need to consider when selecting ideal insurance coverage?
- How to know that you have invested in the best insurance coverage plan?
This is one of the most important aspects of purchasing insurance coverage. Insurance policies are designed to offer with total coverage of insurance. The insurance company makes a payment of the policy coverage amount to the nominee of the insurance policy holder. If any unexpected event occurs, then the company will pay your nominee, with the total insurance coverage amount. This money will also provide with safe and secure future, to your family members, during your absence.
Any person, who is appointed by you, to get the claim amount from the insurance company, is termed as your nominee.
To offer with right benefit, you may have to make the selection of right amount, as coverage. In general, try and make the selection of money that coffers with ten times more benefit, as compared to your current income. So if you are earning Rs 10 lakhs annually then try and select insurance coverage equivalent to Rs 1 crore.
Additional questions to remember
- How much amount is required by your family for overcoming all expenses?
- How much money is required to purchase car or a house?
- How much money is required for your children education plan?
- What liabilities are required to secure your family future?
If you are planning to save some money for your future time, then investing in insurance plans may always be the right option. it can be considered as one of the tools that can help save money for your long term plans and goals. Insurance coverage offers you with security and income options.
Planning life stage
The insurance coverage offers with customized plans, for various stages of your life. Before making the selection, you can compare insurance plans and then decide. With insurance plans you can decide to achieve all your life goals like purchasing new home, car or education plans.
Some common life stages and needs
- New job – You have to look after your parents needs.
- When married – You need to secure your wife’s future.
- Had a child – Invest and secure for education and future.
- Teenage kids – You need to plan for your retirement.
- Old age – You need consistent income for your life time.
Insurance coverage also offers with different tax benefits, on your payments and returns. Most income generated from insurance will not be taxable. You can go through the policy terms before enrolling.