Life Insurance – Life insurance is a safeguard for the family’s financial deficiency in case of in case of individual’s death. Before buying an insurance policy, one should be aware of the benefits of different insurance policies and his personal goals. Few points to be taken into account before buying a health insurance policy are –
Insurance plans are mixed with many endowment or ULIP plans: Apart from term plan which is only insurance plan and provides benefit in case of a sudden death to the family. While some of the other plans like ULIP etc. are accompanied by regular payments as well as return on investments. However, while buying an insurance policy, one should not be confused and should have the main focus on the coverage he desires for the family.
Policy Tenure: Tenure should be chosen wisely for the policy which is the ideal case should be the time till which you have dependents on you which is still 60-65.
Type of plan: Out of the whole bucket of insurance plans available in the market, one should choose a plan which fulfills his coverage needs as well as the cost he can pay for the insurance plan as a premium. Source-fincash.com
Claim Procedure: You and the beneficiary both should be aware of the claim procedure to prevent any hassles from claiming.
The benefit offered: Insurance policy comes with two benefits, one is death benefit and other benefits at the time of maturity. Maturity benefit is applicable only when all the premiums of the policy are paid.
Tax Benefits: Apart from other benefits, life insurance also provides tax benefit up to a maximum of 1,50, 000. Also, the sum insured paid at the time of maturity is tax-free.
Conclusion – one should start with Life insurance policy as early as possible as the premium amount would depend on the age of the person, also the goals should be clear. Ideally, life insurance should not be mixed with investment plans.
Car Insurance – We spend a lot of time choose the car we want to buy so it is really important to have your car insured. However, it is mandatory to have your car insured in India.
Car Insurance works on the principle of use it or loses it and if you haven’t used the claims for the entire year, you get good NCB (No Claim Bonus). Key points to take care while choosing Car Insurance are –
Type of insurance – One should choose whether he wants to have a basic plan which is a third party insurance or a complete insurance of his car
No Claim Bonus – This is the bonus one can avail if he has not used the insurance for the entire year. It can be used even if you are switching the insurance company.
The market value of your car– Depreciation is used to calculate the value of your car (IDV). It helps in better negotiating your car price.
Choose necessary add-ons – Insurance plan comes with the number of add-ons, you should choose the plan wisely depending on your personal requirements.
Apart from these customers should take into account of the procedure of claim settlement, cashless facility availability etc.
One should also take care that they don’t miss the insurance policy date as there are good penalty amount in case you miss the date.
Life Insurance Corporation – Life Insurance Corporation is an Indian state-owned insurance group headquartered in Mumba. It is the largest insurance company in India and was founded in 1956. As of December 2016, the total asset value was 24.4 Lakhs. LIC is regarded as the most trusted insurance company in India.