3 Steps to Choose the Right Insurance Policy

About Right Insurance Policy

Right Insurance PolicyNowadays, it has become imperative to get an insurance cover for you and your family due to increasing uncertainty. Taking an insurance cover is not enough but you need to choose the right insurance policy.

There are several advantages to an Insurance cover. It provides financial support for your family in case of your untimely death. It is an important aspect to have a sound financial future. Therefore, getting a Right Insurance Policy is very important.

  1. The insurance cover should be based upon your present income and expected income.  It simply tells your current and projected ability to pay the insurance premium.
  2. Cost-benefit: The cost of the insurance cover depends on several reasons like the cover and the benefits it provides. You need to look at the cost of buying insurance and the benefits it offers.  There should be a right balance between the costs and the benefits available.
  3. Cover: Make sure that the insurance cover provides financial coverage for all your dependents. It should also cover the majority of health problems. 

The four main varieties of insurances that most people opt from are:

1.  Term Insurance: This plan offers coverage for a limited period of time.

2.  Endowment Policy:  This policy is designed to pay the lump sum after a specified period of time or on entire death.

3.  ULIPs: ULIP stands for Unit Linked Insurance Plan is a policy where the value of the plan varies with the value of assets at the time.

4.  Money back policy: It is a plan that provides for periodic payments of partial survival benefits during the term of the policy

It is important to identify the needs and goals of your dependents to establish just how much life insurance cover to arrange. You just need to decide how much you want your dependants to receive in the case of your death, and your premiums will be defined accordingly. Hence, make sure you keep all these factors in mind, compare various plans, and choose your cover accordingly.

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