Getting Insurance Policy is an important aspect and choosing right insurance policy is equally important. Here are the important factors to be considered for choosing the right Insurance Policy:-
- Your current & projected income.
- If married, earning capacity of your spouse.
- No. of individuals financially dependent on you in your family.
- Your ability to pay premium at any point of time in future, even when you will not have constant fund inflow.
- Your age, medical state & future financial plans.
- Thoroughly analyse the cost for the insurance policy and its benefits.
- Decide whether you need pure insurance or insurance covered with investment opportunity for income tax exemption.
- Duration of the Policy & Premium you will be have to pay (Monthly/Quarterly/Half yearly/Yearly).
- Select the type of Policy (Term Insurance-Limited Period, Endowment-Lump sum return after specified period, Unit Linked (or) Money Back-Periodic Returns).
- Most Important. Do not buy Life Insurance Policy if you are not sure that you will be able to continue the policy. Instead, invest in Banks & Post Office Schemes.