A life insurance policy offers financial security to you and your family. It can also help pay off your debts, help in retirement planning, and aid in children's education. You can also use the policy to meet your short-term and long-term financial goals like marriage funds, retirement funds, funds for building a house, etc. Choosing from a set of life and health insurance plans may be confusing, but some points might help you decide.
Tips to Determine Which Insurance Product is Right for You
Here are some ways to determine the right policy for your needs:
Determine how much coverage you need
Depending on how many dependents or family members you have can help you decide on the coverage you require. Based on your estimation, how much may your dependents need to carry on with their lives? If you have children, their education fees can also determine the kind of coverage you would need. Inflation might also be crucial in determining your insurance scope in the current market conditions.
How old are you?
The charge for a life insurance plan for a young person is far cheaper than for an aged individual. So, buying a life insurance policy early in life is best.
Is it for retirement planning?
An insurance policy with consistent cash flow even after retirement is a good idea. These retirement planning insurance policies help you in leading a stress-free life post-retirement.
Decide if you are looking for insurance to meet your short-term or long-term financial commitments. Many insurance plans are available around it to bear your family expenses or your business necessities.
Clearing off debts
If you are looking for a life insurance plan to clear off your debts, options are also available for you. These policies allow you to take the loan against your policy from the insurer. With such policies, you need not mortgage your property. When taking higher loans, check for the interest rates associated with them.
What is your annual income?
The coverage of the life insurance policy you will buy depends on your current annual income. Ensure that the insurance premiums do not hamper your daily financial activities. If you wish to purchase term insurance, calculate the life cover to 15 to 20 times your current annual earnings.
For example, if your yearly income is about seven lakhs per annum, you can go for the 1 crore term insurance. For such an insurance policy, your family will get a sum of 1 crore after your demise. The amount will help them to meet the financial void created by the loss of earning members.
How much risk are you willing to take?
If you can take a high risk, the returns on insurance policies will be higher. But, if you are willing to take that risk is your call. The unit-linked life insurance policy provides higher gains at higher stakes. Traditional endowment plans offer lower returns and lower risks.
Before You Buy A Life Insurance Policy
- Compare the different types available.
- Check for the inclusion, exclusion criteria, premiums, and interests associated with the procedure.
- Take expert advice from professionals or individuals with prior experience in such investments.
- Once you have selected the insurance plan, decide at what durations you wish to pay the premiums.
- Also, determine if you want to spend a lump sum or instalments.
It would depend on your financial condition and financial commitments.
Check for the claim settlement ratio when you select the health insurance plan. Also, check through the post-sales service by the insurer. Customer reviews and testimonials can help you select a credible life insurance policy. Do not choose life insurance products in haste; take a conscious decision. Safeguard your family when you are not there for financial support or plan your retirement.
To know more, please read the relevant articles at our website www.pnbmetlife.com.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
Terms & conditions apply, Benefits stipulated are subject to premiums paid and policies in-force. For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: firstname.lastname@example.org or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
|Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.