Insurance: In this world full of uncertainties there is a need to be sure about the safety of your loved ones. This can be done by securing yourself with the shield of life insurance. A life insurance policy is a legal contract between you and the life insurance provider. In lieu of regular premiums paid by you, the insurer pays a fixed amount after a fixed period to you or your loved ones in case of your demise.
However, apart from acting as a financial safety net for your loved ones in your absence, life insurance has some other benefits as well. It acts as a savings vehicle, can provide you financial independence in your old age and can help in reducing your tax liability. There are many reasons to invest in life insurance. However, buying one of the best plans for yourself can be a bit difficult. In such a situation, some things should be kept in mind.
You should have a rough estimate of how much money your family would need in case of your untimely death for life insurance coverage. The best way to do this is that you have to assess it and take insurance coverage accordingly.
Set the duration of your plan
Once you know how much coverage you need, it is important to know till what age you will need it. The tenure should not be too short as the policy may lapse before your financial obligations are met. Also the tenure should not be too long as the premium charged will be very high due to high tenure.
Choose Add-ons Wisely
Life insurance plans offer riders at a reasonable cost which you should definitely consider, even if they do not suit your needs. It also includes an additional cover for death due to accident.