Life Insurance: If you are going to buy a life insurance policy for the first time, then some things must be taken care of.
Life Insurance: Due to Corona, there has been a boom in the insurance industry all over the world. In the uncertain post-pandemic environment, more and more people are getting attracted towards life insurance and are beginning to consider it necessary. Young people are also buying life insurance policies. In such a situation, it is important that before buying it, make sure to know some things like which life insurance policy should be bought and coverage should be there. Apart from this, how to decide the insurance company.
Which policy is better to take?
A life insurance policy can help in achieving goals like children’s education and retirement. In such a situation, while buying a policy, definitely draw a blueprint of future plans and assess how much it can cost. This will help you in buying the right policy. One thing to keep in mind is that one policy may not fulfill all the goals. For example, if you want to build a corpus for your child’s education and create a contingency fund for your spouse apart from protecting your family members, then a term insurance plan cannot achieve all these goals.
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How to decide on adequate life cover
While buying a policy for the first time, most of the people are confused about how much cover to take. For this, most financial experts recommend that you should take a life cover of at least 10 times your income. This advice is good but everyone should decide the cover based on their financial needs. For this, decisions can be taken on the basis of income, debt, savings and lifestyle etc.
Keep reviewing your needs
Financial needs are different at each stage of age. As you are single then your financial needs will be different and when you have kids your financial needs will be different. In such a situation, it is important that you keep reviewing your financial portfolio annually or at regular intervals. While it may be cumbersome for some to do this every year, review your protection requirements on life milestones like your marriage, new home, birth of a child, etc.
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Don’t worry about the rising rate of term policy
Term plan rates are getting expensive due to Corona epidemic. However, due to this they should not be dismissed because in the absence of a person there is no better financial option for financial support for his family.
Disclose all necessary information
When you are buying a life insurance policy, make sure to disclose all the necessary information. The main objective of buying a life insurance policy is to provide financial support for the family in their absence. In such a situation, while buying the policy, disclose all the information about yourself so that there is no problem in the clean settlement process.
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do research yourself
You can consult your financial advisor about which policy you should buy. However, before buying a policy, instead of relying only on the advice of experts, one must do research on their own.
How to choose insurance company
Whether an insurance company is a well-known name or not, it is more important to find out why it is in the news. For this, you can contact the people near you and look at important statistics like claim settlement. This will help you in choosing the insurance company to buy the policy.
(Article: Anoop Seth, Chief Distribution Officer, Edelweiss Tokio Life Insurance)
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