Article by Sherin Dev; Follow me on Twitter Getting good knowledge on insurance is a must for all to live in a better way. No one in this world generally exempts from insurance. One or other way, all of us have policies. There are ‘n’ number of policies available today. Of course, a person not required to subscribe all the policies than required one but, whenever subscribing the required insurance, keep the following thoughts in mind to tune your policy in a better, structured way and to take maximum benefit from it.
Before moving to the points, I like to introduce some of the important insurance plans to fresh up your mind. Starting with traditional policies we are going through term plans, child insurance plans, motor insurance, unit linked policies, retirement plans, mediclaim policies. These are considered as the most famous policies today. Now will take look on the important areas to care off with each these plans.
1. Traditional Plans – Know the influence of inflation
There is no special feature to enable with traditional insurance plans. It is totally debt based scheme and the insurer get fixed insurance coverage throughout the term and finally receive the promised sum along with deserved bonuses. Whenever getting forward to subscribe any traditional insurance plan, ensure you have learn the maturity benefit connected to inflation. Understand how the increase of inflation going to affect your final amount. If you are planning to subscribe a traditional plan for investment purpose with a pre-set goal in mind, understanding the influence of inflation at the end of the term could help to avoid panic situation like not able to meet your pre-set goals!
2. Term Plans – Understand your real need and worth
Term plan should start at the earliest in the young age. As age counts, its premium also increases. A good term plan should have taken by considering the 6 times or annual salary and need to consider the future increases too. Proper nomination, riders, all to be sets in a well manner to avoid future difficulties.
3. Child Insurance Plans – Let the Insurance Company Handle the Future of Your Child
Child insurance plans generally known as unit linked child plans. Investing on child insurance plans are a must to secure the future of your kid. The most important point to remember when taking child plan is. one should opt Premium Waiver option. Without selecting this free option, child plans are more risky in the side paying premium. Once you opt the Premium Waiver, insurance company will pay all the future premiums in case of the sudden demise of the policy holder that is you.
4. Motor Insurance – Save your money and let company pay to others
Whenever taking motor insurance, ensure you are opting third party rider. Incase of any accident by your mistake, the victim get paid by the company if you opt this option.
5. Unit Linked Policies – Make more money for long term
Unit Linked Policies intend to invest continuously for long term to create wealth from the stock market. Ensure you have selected equity option when the stock market is down and switched to debt fund when the market is in the peak. Ensure you have found the best policy compares to others in the similar kind available in market. Your policy should provide maximum benefits, covers, less in costs.
6. Retirement Plans – A way to the safe retirement life
When opting retirement policies, select a policy without insurance cover and start it at the earliest. Your policy should be the best available in the market. This can be identified by comparing the features of similar kind policies in the market.
7. Mediclaim Policies – The way to meet unexpected expenses
Mediclaim policy buyers should understand all the terms and conditions in the manual. A mediclaim policy with wide network of free hospitalization facility should be opted. Whenever going for a mediclaim, ensure you have selected family floater to protect you and entire family members under a single umbrella of policy which has maximum benefits. Above are the important points to remember when buying the insurance policies. Missing of any or all of the features associated to the above policies can make your policies useless for short or long run. Readers, if you feel I have missed any points please comment to inform me.
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