How life insurance is important for our financial goals
Life insurance is not provides protection of your family only, but can also act as an important
tool for financial planning. These goals may be related to child’s education, wedding planning,
buying car or home, etc.
Term insurance ought to be in your money related portfolio when you plan to get married. The
sooner you buy the lesser premium you pay for the same insurance. Term insurance would
protect your spouse's financial need should anything unfortunate happens to you.
“The minimum age to buy a term plan is 18 years and the maximum could go up to 65 years. The
best time is to buy when you are in the prime of your health and career, as with increasing age
the risk factors go up resulting in higher premiums. The basic calculation is done based on your
present salary, and the sum assured is usually 15 to 20 times of your annual income,” said
Santosh Agarwal- Head of Life Insurance, Policybazaar.com.
When you become parents
Term insurance plays a very vital role to protect your family, especially if you only earning
member in your family also you have dependents. A term cover design with riders can likewise
enable you in the event that you to meet any terrible mishap or wind up with any sort of
incapacity because of any unexpected condition. If you have liabilities such as mortgage loan or
any kind of payment due, in that case you need to buy term insurance so that the burden doesn’t
fall on your family.
When you are near to the retirement
If you wish to have financial independence after your retirement, you need to well plan in
advance. Planning should be done in such a way that you can easily manage your medical
expenses and living expenses. Likewise, ensure that post-retirement you have secured your
riches with the goal that you may not lose what you picked up amid pre-retirement. Attempt and
put resources into values to get significant yields amid early working life and as you move
towards retirement age, exchange the property to obligation ULIPs to shield the development
corpus from any horrible market movements.