Life is full of uncertainties – in this scenario, we all need to take some steps to protect the lives of our loved ones, especially those who are largely dependent on us. The best way to do this is by securing yourself, and insurance coverage can be the best armor for your life.
Life insurance can be better defined as a legal contract between a life insurance service provider and you. When you get in for an insurance policy, you have to pay regular premiums for a pre-decided duration, and the insurer remits a handsome amount based on the policy plan on the maturity of the scheme or in case of your sudden demise.
In simple words, insurance can work as a potential financial safety net for your loved ones when you are no more. It also works like a savings instrument while offering great financial freedom to the insured person in old age. Moreover, people who take life insurance plans also receive a special rebate on tax liabilities.
If you are looking for the best life insurance plans for the first time, you may get confused among several options available in the market. Well, below we have listed a few tips and tricks from experts at finsurancy to help you choose the best insurance plan to protect your family:
Identify your life insurance objectives
The ultimate goal of buying life insurance coverage may vary from person to person. In case if your first priority is to safeguard the financial security of your family, you can consider a term insurance plan that offers great coverage at affordable rates. In case you wish to save for the education of your child or want to buy your dream house, it is better to invest in unit-linked insurance cover. Some people also prefer buying a retirement plan that provides regular income for day-to-day expenses after retirement.
Evaluate optimal insurance coverage for your needs
Several financial advisors may suggest that it is better to get a life insurance cover with a price of approximately 10-15% of your annual income. But it is important to consider several elements to pick the best insurance plan for your life. In case you have some debts, it may be challenging for your family to meet EMI deadlines in your absence. Some of you may even need to arrange funds for the education and marriage of the child. With the rising inflation, your family members may also find difficulties in maintaining their current lifestyle in your absence. Therefore, it is important to estimate the overall future expenses of your family and choose an adequate life insurance plan to cover them.
Another important tip from experts is to read the policy terms and conditions carefully to ensure that you go ahead with the most suitable plan. It is always advised to buy insurance at an early age to get better offers. Also, you should evaluate the insurance needs from time to time to align them well with your financial goals.