Life Insurance cover needs to be aligned to life stages

Resultantly, the policies were bought to merely meet the purpose of tax saving or for the sake of mental satisfaction that some amount of life cover is in place. However, India is slowly becoming aware of the greater significance of buying a proper life insurance.

Jan 01, 2016 04:01 IST India Infoline News Service

Until last few years, policyholders blindly followed their insurance agents’ advice while buying a policy. Resultantly, the policies were bought to merely meet the purpose of tax saving or for the sake of mental satisfaction that some amount of life cover is in place. However, India is slowly becoming aware of the greater significance of buying a proper life insurance. Still, there is a lingering doubt among many as what should be the adequate insurance cover for them?
 
Here is a brief guide to getting to that point.
 
Evaluate your requirements: These days many insurance portals are available that will help one to find the adequate amount of insurance cover as per their needs while giving the information about the approximate premium amount. It is recommended that individuals should prefer buying a term insurance plan, which is cheaper and comes with riders such as accident or illness.
 
Cover liabilities: As one progresses through career, it is usual to accumulate both assets and liabilities such as a home loan or car loan. To cover such liabilities, an individual should buy an online term plan that matches the loan liability.
 
Accommodate changes: It is natural for an individual to witness changes during the life stages such as marriage or becoming a parent. With such changes come additional responsibilities. At such points, an individual should step up their coverage amount to align with the increased dependencies or responsibilities. Again, life cover can be reduced once an individual has accumulated sufficient assets during the later part of the life stage.
 
Offline or online: Buying the right cover is as important as deciding the adequate amount of cover. Today, policy seekers have a wide range of options available on both online and offline platforms. Before taking the final call, it is crucial to check the claim settlement ratio of the insurance provider. Secondly, depending on the level of service expectations, an individual can choose between offline and online policies, where the former offers dedicated services over latter. 

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