Understanding which type of policy is the best while insuring your life

Understanding the difference while you go for shopping a life insurance insurance product is of utmost importance to avoid the future frustation,as there are plenty and plenty of plans available from different players present in the market.viz ICICI Life Insurance,HDFC Standard Life Insurance and moreover there are agents who can force you to buy a different products which may not be according to your suitability and all you have to do nothing but regret in future.
Usually there are two types of policies to insure the lifeTerm plan and money back plan
hence there is need to know what actually is there in these types of plans
Term plan in simple words is the actual life insurance.where you pay the premium for the term specified by you and got no maturity value at the end if you got survived.But what happened when you die is that your nominee receive all the benefit for which you have brought that policy.This is the cheapest form of insurance.For instance if a 25 years old person want to go for it ,he can avail the insurance of 10 lakh rupee by paying just 3500 Rs per annum nearby. It’s main feature is that you can cancel it when you got confident in future about having built up sufficent surplus to cover all your liabilities and your dependents’s future needs.On the other hand Money back plans(including endowment,non endowment and ULIps)are most complicated and mostly missold to benefit either the organisation or agents who used to sell them.Basically these plans are the combination of investment and insurance.that is the reason why the premium for such types of plans are higher.What you got at the end of the term is a part of the premium you used to pay.It’s main drawback is that you end up having very low cover.
Avoid these policies unless you have throughly understand these avilable products and never go for those without doing your homework.

Shopping for a life insurance policy:

strictly speaking shopping for a life insurance product that safeguard the financial future of your beloved one is the most important and complicated task.in most of cases this complicacy leads to misselling also and you may also be victimised too.
Knowing pros and cons can help you a lot.There are lots of benefits in having a perfect insurance plan.Actually it acts as a base around which your entire financial planning is based.choosing any financial product with knowing the basics can help you much.For instance, while investing in a market related products you can go for higher risks if you have got the great insurance deal.
So before signing up for a life insurance product you must answer your self these question–
1.How many dependents are their who are living on your paycheck? Including your spouse, children, parents and even grandparents in some cases also.
2.How much outstanding debt or loan you have to pay?(house loan. Vehicle loan, personal loan and borrowing from friends or relatives)
3 Have you got a will? If you haven’t one the major portion of your asset will get taxed.
4 Have you made arrangements for your after death expenses? funeral or other religious rituals that are followed after. One must die having no debt at all

on answering these few queries you can self decide how much cover you must have so that all thing can be taken care of. Usually experts suggest to have a life insurance deal of about 8-10 times of your annual gross income.

Caring forever

Insurance :”let’s get down to basics”

Amit , a software
engineer for a large organization, was living happily with his 2 years old daughter at palmpur( Himachal Pradesh)… having a huge source of income, he never given a thought to manage his personal finance. their life was going in a full swing.

unfortunately, no one is able to predict that which way the life is going to lead us..Same thing happens with Amit when One day he got died in a road accident. As obvious, his family has to pay the price for his failure to plan his finance and even not having a basic insurance policy they have to suffer a lot. If he had shopped for this basic life insurance product, his family could have been got a major relief in managing its ongoing future expenses

this is a typical example of having given no importance to this most important aspect. Moreover I have seen lots of people who has plunged all their saving into insurance or insurance related products. Moreover there are some people who lies in the category of having inadequate insurance.

Thus what actually the insurance is? how much cover you must have? and what types of plans are perfect ? What other insurance products must have in your kitty? These are the basics know how about which each and everyone must know.

First and foremost question-Why you need to be a financially literate ?

Am I stupid? to ask this simple question that why one need to be a financially literate? Why one need to know bit and bit regarding his personal finance?
Though it won’t matter much for those who won’t care. but the answer is yes.. Of course for those who are much bothered to manage their personal money, wanted to awaken their financial genius and overall interested in getting hold of their financial future. For all of them -There are plenty and plenty of reason that why one move forward to grip the requisite knowledge…….

• Then there is a need-you have been working very hard to fetch even a single dollar that you enter in your pocket. You are doing so -day and night- for the bright financial future of your beloved kids and family members who depends on you. You are digging hard and hard, looking for new resources, new opportunities, seeking for promotions but alas! Nothing is going the way you want..there is lot and lot more yet to achieve. you gets confused. you became irritated …your money life is not going the way you always aspired for.
here arises a need… an  urgency…. a need to stop digging and brushing up your basics of managing money.

an urgency arises to finetune your basics regarding……..

1why you need a life insurance and how much?

2 How to start on your investmrent journey?

3 Where to invest and how much?

4 what are your rights and duties as an investor?

5 how to make an informed choices ?

6  what is compound interest? how  it empower your money life?