But as situations differ according to person to person, so does the life insurance, which differs and comes in various kinds of policies that should be chosen according to the situation, needs and requirements.
Reasons to choose the best policy
Even the most diligent insurance policy buyers might sometimes make mistakes while taking the right decision. However, it all depends on the financial needs of the family. Let us consider some of them. One should consider if he needs to protect future earnings from unknown circumstance. He will want to prepare for retirement or stop earning. Considering the health issues of the family and for sudden expenses should be given priority as well. People also want to set aside a particular amount for fixed future expenses like education, marriage, and business etc, or Life insurance for protecting the capital that may erode due to inflation and many more reason can determine the right life insurance policy for any age.
Term plan in India
The term plan can also benefit many people who like to have a policy for a limited period. They do not have any investment or savings. It is only for the life cover of the policy holder. The amount is paid upon the death of the insured. The plan suits everyone, but is especially ideal for those who want to have a low cost life cover. The buyer should consider the years for which he wants the cover and also the premium that is available. Term plan in India provides coverage for a term starting from 5 to 30 years. It comes with a fixed rate of premium and for the whole duration of your choice. It can also be taken by person of any age, sex and occupation.
The best way to ensure you have a right term life insurance is by buying it when you are young and in the best of health. The reason for this is the premium, which when bought for a term cover policy early in life can cut down the amount to half as compared to the policy that you would buy after ten years.
The right life insurance for your age
If you want to know which is the best insurance for you take a look at the following points given below.
Early 20s and single or spouse with no debt – people in this bracket if single do not need insurance and if they have a spouse, then they can have a term insurance policy.
Late 20s and single or with spouse, children and with debt – people in this situation will need a life insurance as they have to think of the young spouse and the child and should also consider of the debt will need a good term insurance policy that can cover around 20 years to help with the education and the necessities of your family.
Early 40s or late 50s, single or with spouse, with children or loan – in this stage, if you do not have a debt, then you can have a small permanent life insurance policy to cover any emergency situation. If you have growing children you can cover for their education and basic necessities upon your death. If you have a large loan, a good term plan is highly advised that can cover the loan and a permanent life insurance policy.
Late 60s and with no debt – the people in this situation can have a small permanent life insurance policy that can cover their needs, or any medical expenses. As there are no debts, there is no need to have a large cover.
But one still needs to consider one’s situation as life is not perfect. A good plan with a good thought given to the financial situation can help you get a great cover.