Considering upon the facts and realities of
life, it is essential for everyone to insure themselves properly. Benefits of
life insurance plans not just cover you but also guarantee a secure financial
future for your loved ones even when you are not there to look after their
needs. Currently every investment plan
is incomplete without life covering insurance plans. Through this traditional
life insurance plans you are actually taking small steps today to build a
massive fund for tomorrow. Beside the coverage, you can even save huge on taxes
as these plans also fall under the category of tax saving investments.
In this
write-up, we will try to discuss some points with our readers to make them
understand how to outline your investment
planning that will earn you both good return and security for your
hard-earned money.
Start Early:
Age matters and when we are talking about life
insurance, it matters the most. Premium for any life insurance policy is
calculated on the basis of a person’s age. The younger you are, the less you
have to pay for premium. Our advice is you set your financial goal and
implement an investment plan early in your life to avail long coverage period
in lowest cost.
Aim:
Before you start investing in various life insurance
plans, get a clear idea on their purpose. Although you are investing the
money but the policies are designed in a way to benefit your immediate family. Primary
intension of these policies is to offer financial help and support to your
family in case of your death.
Calculate Your
Financial Need:
Just the way every individual is different from
the other, their financial goal also differs from each other. As life cover
insurance plays a vital role in your investment
planning, they should be chosen wisely. Consider the coverage you need for
yourself and your family and your financial responsibilities of present and
future before taking any investment plan.
Savings:
Life cover insurance policies can be a great
option to save tax. Generally you can claim tax deduction under Section 80C of
Income Tax Act on the amount you paid towards the policy premiums. Without
putting your money in danger by involving any market related risk factor, you
are saving handsome through these tax
saving investments.
Inflation:
Most of us tend to evaluate the future
financial requirements on the basis of today’s scenario. But this deadly sin
can jeopardise both your financial goal and your family’s future. The amount of
money which looks sufficient today will not be sufficient enough after 10
years. Inflation rate will surely cut your fund short. So design your accordingly
to reverse the effect of inflation on your savings.
Compare and Choose:
How do you know which insurance plan is right
for you from this vast number of life cover insurance plans? Internet comes
with a solution. Do your research work by browsing the web. You can have all
your queries answered here. Compare between policies before you make your mind.
You can even bypass the agent as every company comes with online policy
registration option. It saves your money, energy and time simultaneously.
Factors That Determine
Premium Amount:
Your age plays the primary role in determining policy
premium for you. The younger you are,
the less you have to pay for premium. There are many other factors too which
are taken under consideration before the insurer sets your premium value. As
women live longer, they can enjoy slightly lower premiums than men. If you
consume tobacco in any form, be ready to pay little more. Medical history of
your family also can increase or decrease the premium rate.
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