|Insurance Buying Tips #1: Shop smart|
|When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.|
|Insurance Buying Tips #2: Look for discounts|
|Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.|
|Insurance Buying Tips #3: Fill in the gaps|
|An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.|
Many of us think life-Insurance is a financial burden as we need to pay premiums year on year. However under term-insurance, you need to low premium, but can have high risk coverage.
What is Term plan?
Term Plan provides coverage for a certain period of time / years. If insured dies within the policy coverage period, sum assured would be paid to nominee / beneficiaries. There is no maturity amount for Term Insurance-Plan.
5 Benefits from Term-Insurance-Plans
Before moving to benefits, we need to understand that the need of life-insurance could be differentiated from a person to person. Hence a benefit need not be same for everyone.
1) Family Secured: Term-insurance-plan would help you to have secured family. In your absence, your family can continue to lead normal life without any financial problems.
2) Protection against liabilities and debts: You would have taken housing loan or any other loans for your children education. In your absence, they would be liabilities for your family. This would protect your family against any such liabilities or debts.
|Insurance Buying Tips #4: Purchase life insurance—you aren’t too young|
|Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.|
|Insurance Buying Tips #5: Talk to an independent agent|
|An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.|
|Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living|
|You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.|
3) Low Premium, high risk coverage: Under term insurance plan, generally premiums are cheap. You can get high risk coverage for low premiums.
4) Income tax benefits: You can get income tax benefit u/s 80C for the premiums paid for life insurance. You can also get income tax benefit u/s 10(10D) for the proceeds.
5) Online term insurance plans comes cheaper: While offline term insurance plan comes at less cost, if you consider taking online term plans, premiums would be still lower.
6) Easy access to low income group: Since the premiums are low, term plans can be taken by low income groups. Term plans are easily accessible to common people.
7) Invest surplus money in high return investments: You can consider taking term plans and invest any surplus savings into other investment options like protection-cum-investment plans or mutual funds etc.
8) Less documentation: There would be less documentation required for insurance plans compared to other life insurance policies.
9) Plans availability from major insurers: Term insurance plans are available from all private and public sector insurance companies. Due to this, you can pick and choose the insurance which is suitable based on your need.
10) Additional riders with low additional premiums: You can consider additional riders by paying small additional premiums on your term plans.
|Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover|
|Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.|
|Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier|
|here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.|
|Insurance Buying Tips #9: Review your insurance needs on a yearly basis|
|As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.|