How to plan your life ahead of times….
“In life we all strive to plan well and planning is all about living well.” But no matter how much you try everything in life does not go as planned. At times, life throws up nasty surprises and we have to accept it, live with it and move on. Many a times you may have planned various things for you and your family in future. But what happens if you struck with untimely death? Your entire family suddenly turns orphan, and if you were the only breadwinner it only adds to the difficulties for them. Therefore, insurance market has introduced the term plans whose main objective is to protect your family financially from unforeseen circumstances. Term insurance plans have a high risk protection component. The main protection plans protect the family against the ‘cash flow risk' of the untimely death of the breadwinner. The only way to somewhat reduce the pain of death in the family is to make sure that at least financially the family is secure.
In India there are around 20+ insurance companies offering various sets of life insurance policies to people. Many a times the product list is so vast that it becomes very difficult to choose among the options available. Therefore, in order to buy the right type of life insurance, an individual must perform some research and evaluate various policies according to their own requirements. The first thing you need to do is assess your own needs before deciding what you want to buy. There are various policies such as unit linked, whole life insurance or term insurance plan in the market available for the potential customers. All you need to do is just understand your needs, do a bit of research through online portals or calls or visiting the insurance companies and just buy a suitable insurance policy.
Term insurances are one of the best tools of modern day life insurance schemes which comes in the form of a straightforward protection plan, that enables the insured to get adequate life insurance cover at an affordable cost. The reason being straightforward is that term insurance is a pure risk coverage plan i.e. it covers income related risks. It protects your family against financial hardships in your absence. But term insurance plan cannot be perceived as an investment tool as it does not provide any maturity value to the policy holder in case he/she outlives the term period, unless he/she chooses a return of premium term plan.
In order to buy best term plan in India, there are few things that a person must consider. One must compare term plan offered by various insurance providers as different policies has different types of coverages. Remember term is straightforward so higher the insurance coverage, higher the insurance premium and vice-versa. You should carefully study the fact that your ideal choice term plan should cover the household expenditure, major expenses like marriage of the children and other liabilities like loans. Life cover should be adequate in order to achieve the purpose of insurance.
Determine the time frame between 5-25 years till you require insurance cover which can be associated with your dependents. Buy the insurance policy till the time you have dependents depending on your income. Not to forget inflation, any amendments in policy structure by government should be considered so that the insurance policy satisfies your financial requirements in the future.
It’s better to buy term plan earlier in life as premiums set are low when you are young. Always compare to buy cheaper term life plan and most importantly an effective one. An individual can use comparison tools provided by insurance aggregators online to compare term plan rates which will eventually help you to buy best term insurance plan in India.