Life insurance is an important asset in your life. It offers financial protection to your family when you are not with them. Life is full of uncertainties. You cannot predict what will happen in the second seconds. To live a life with peace of mind, it is important to have life insurance. Because it helps you out at the time of emergency. The sum-assured you will get after a maturity period will help you to achieve financial freedom. Or, in case you die, the insurance company will offer a lump-sum amount to your family to continue their life smoothly. Needless to say, life insurance secures the future of your beloved one.
Types of life insurance:
Basically, two types of life insurance are listed below-
- Pure life protection
- Insurance plus savings
Pure life protection: This plan is designed to give financial security to your family when you are not around with them.
Insurance plus savings: This plan is designed to help you achieve long term financial goals like buying a home, funding your daughter marriage or education, and so forth.
Important things to keep in mind while purchasing life insurance:
We hope now you understand the overview of life insurance; now we are going to tell you the important things which you need to keep in mind while buying life insurance.
Know your current life stage:
As you grow older, you have passed through many different life stages, like getting the first job, your marriage, the birth of your child, and your retirement forth. So, before opting for the life insurance keep the current life stage in your mind. If your retirement is about to come then you should opt for the retirement insurance; if you often feel unwell and have no savings, then you should opt for the term insurance plan and so forth.
Decide how long you need coverage:
The second thing you need to keep in mind is the length of the coverage. If you need insurance for a specific period, then you should opt for the term life insurance. Whereas, if you need insurance for a lifetime then consider whole life insurance plans. It is advisable to choose a whole life insurance plan because the longer you stay invested, the better the return of the investment you will get.
Name of a nominee:
Your life insurance nominee is the person who receives the lump-sum amount after your death. When choosing a nominee, avoid naming a younger or elder child, it is advisable to choose a spouse as a nominee.
Verify all the charges of life insurance:
Always take time to check the features and terms and conditions of the life insurance policy. You should also verify the tax benefits you will receive in the life insurance. Also, check the reviews of the insurance company on digital platforms.
We hope this comprehensive blog on life insurance will help you a lot. If you are thinking to buy life insurance plans, it is advisable to keep above mentioned points in mind.