Of All Insurance Plans Buy Term Insurance First!!
It requires a great deal of courage and maturity to accept an inevitability of life -DEATH
.When we accept that we can die anytime and there is no guarantee to life, the first question we will have to deal with as a parent / spouse is that, what will happen to my family? Will they have money to sustain a comfortable lifestyle, complete their education, and fulfill their dreams? Here comes a simple solution INSURANCE.
A tiny amount of our income will ensure that our families are secure incase the unforeseen happens.
Here I would suggest to all to go for a Term Insurance Plan. Term plan is the basic white bread of insurance. If money is an issue then there is no requirement to add butter/ multigrain / oat etc. All the other adds on will increase the premium. Buy what you can easily afford, to secure your familys future.
Questions that will come in mind are
1. What if I dont die? My money is wasted..
Lets take an example of a mandatory insurance - Car Insurance. If we dont have an accident the amount gets wasted. However, we still take it because in case we dont have it we get penalized by the traffic cop. So to avoid a fine, you pay a premium of approx Rs 15,000 for a cover of Rs 7 Lacs, which is much higher than what you would pay for a Rs. 1 crore Sum Assured for protecting your life!
Therefore, our money is not wasted. Its insuring much better things for much less.
2 . Isnt a Pension Plan better? At least I will get something at the end of it.
If you have the money to spare and invest, go for it. But if you have limitations on your funds then a Term Insurance is the very basic you should go for.
3. Isnt it just better to put the same amount in my bank every month or invest in shares?
In the case of Investments, the day you die your contributions will stop too. Also, investments are very risky and come with no guarantee.
Term Insurance is also eligible for tax deduction under Section 80G. In fact all Life Insurance plans act as a great tax saving tool. Its advisable to do proper tax planning. Be aware of your tax liabilities as per your income slab, and then use insurance as a tool to use the same money for your familys security.
Another thing to be kept in mind while buying a Term Insurance Plan is that always take the maximum term period that is available to you. It will make a big difference in the total amount of premium you pay in total for your term insurance. The amount you will be required to pay for your term insurance at a younger age will be much less than when you buy it later. So buy the full term at the first go.
In the above example, not taking a long term policy in the first place and therefore taking a second one after the maturity of the first policy increase the total outflow by 41%
Therefore, of all the available Insurance Plans remember the following
Buy Term Insurance First
In case you have additional funds to invest, go for the other options
When you buy a term plan, take the cover for the maximum policy period in the first go and save on the total premium outflow.
Secure your familys future Invest in the right Term Insurance Plan.
by: jacksup Home Insurance San Diego Financial Forecasting The Worst Method Of Penis Male Enlargement - Men Learn How To Get Bigger And Impress All The Sexy Ladies All Of The Cool Kids Want To Only Wear Designer Kids Clothes The Good Sides Of Online Dating Stay Safe When Booking a Holiday Online Buying A Used Infiniti M37: Signs Of A Good Deal Big Mistakes In Investing The Search For Cusotm Basketball Uniforms That Won't Break The Bank Myrtle Beach Golf Escalade Tail Lights Go Big On Style Sydney Australia Hotels- Australia Sydney Hotels Shopping For Custom Shirts