As your responsibilities grow, it becomes increasingly important to protect the current and plan for the future. Life Insurance is an effective financial planning tool that provides multiple benefits ranging from Protection, Savings, Tax Benefits etc. But before you purchase a life insurance policy, it's important to be well equipped to choose a plan that meets your needs and requirements.
Keep these 5 things in mind as you go about your life insurance buying decision:
Understand the purpose for buying insurance. Remember that you are buying insurance to plan for some specific goals, cover your life and safeguard the financial future of your dependents. Do not buy insurance only for secondary benefits like tax savings.
The premium amount is generated based on the life cover amount that you opt for. As a rule of thumb, your life insurance cover should be at least 10 times your annual income. You can also use our premium calculator to arrive at a premium estimate.
The ideal tenure of your Life Insurance Policy should be your ‘Retirement Age minus your Current Age’. This means that if you are currently 35 years old and wish to retire by the age of 60, your policy tenure should be 25 years. Some policies also cover your whole life (up to 100 years of age). Popular term plans also offer high life insurance cover till age 75.
Add-ons are additional benefits along with the base cover, such as critical illness rider, accidental death benefit rider, waiver of premium rider, disability rider etc. You can read more about the various types of riders here. These are beneficial additions available at highly cost-effective premiums.
Before buying a life insurance policy, it's important to be assure yourself on the credentials of your chosen life insurance company.
In addition to these, excellence in customer service, reviews and corporate governance practices give vital information about the overall performance of the company. Read more to learn about Max Life as an organization. Also, you can go through the different types of plans offered.