Guide To Buying A Term Insurance Plan- Compare Features, Not Just Premiums !
A term life insurance plan protects your financial dependants in case you die, a health insurance is a must for every individual given the rising incidence of ailments and high medical costs.
You may not be as fit in your 50s as you were in your 20s. That’s a fact of life: as you grow older, your body shows signs of wear and tear and you need more medical care than before.
Research shows that heart ailments and cancer account for over half of casualties among Indians. In fact, India has the highest rate of cardiac arrests in the world and every 13th new cancer patient is from India, research suggests.
A health insurance policy pays for your hospital bills and life insurance provides timely financial support to your loved ones after you die. Both are important covers to have and we tell you who needs these policies, how much and how often one needs to review the cover.
LIFE COVER (Who needs it and when)
Not everyone needs Life Insurance. Children and young adults who are not working and retired individuals come under this category and that’s because they don’t have anyone depending on them financially. The working class that provides for children and often older parents that needs life insurance; in fact buying life insurance needs to be a priority for this generation.
How much cover do you need ?
India, the younger you are, the higher cover you need. “The thumb rule says 10 times the annual income, but the actual need could be between 10 and 25 times".
A cover of 10-25 times your salary may look huge to you now, but if you factor in the time value of money, you will realize it won’t be all that big many years down the line. “If you are a salaried individual, insurers can give a cover up to 20 times your annual income. So, opt for a higher cover early on. Then you need not review your life cover often. A relook is needed when you have a baby or once in 10 years".
HEALTH COVER (Why do you need it)
Everyone needs Health Insurance and that’s because the cost of medical treatment is High. “While diseases may not be much of a concern for young people, accidents can still happen. They need health insurance to financially protect themselves against hospitalization due to accidents or even infection.
Such cases of hospitalization can work up a neat bill. For instance, dislocation, sprain and strain of joints and ligaments that needs surgical intervention or fracture of the leg needing surgery can cost up to Rs.4 lakh in metro cities and up to Rs.2 lakh in non-metros.
Which plan should you buy ?
If you are single and working, you can start with an individual policy. Once you get married, increase the cover by buying a floater policy. “A floater policy works best for a family in the same age group. But if there is a large age gap between the spouses or if parents need health insurance as well or if a family member suffers from ailments like diabetes, then individual insurances for these members may be better”.Infants and young children can be added to a floater policy.
How much cover do you need ?
A health insurance policy is a must but it’s equally important to understand how much you need to buy. It’s also important to get this right because as you grow older you may contract ailments and then it’s an uphill task to get insured. It’s always a good idea to have your own health policy but how much will depend on various factors.
For More Details Visit: LifeLine Insurance & Financial Expert