Friday, November 11, 2011

Buying a Life Insurance Policy in India

In India as well as many other countries of the world, buying a life insurance policy is very important. There are two main types of life insurance India. There is the term and the whole life insurance policies. Most experts recommend the term policy to people who are under the age of forty and who do not have a family history of life threatening medical conditions. The main difference between the two main life insurance of India is that the term policy does not offer any cash values. It only offers death benefits while the whole policy offers both cash values as well as death benefits. The whole life insurance of India tends to be more expensive that term policy.

The whole policy is considered by many to be the best policy in India. The premium remains the same throughout the duration of the policy and is effective until the death of the policy holder even if all premiums have been paid. This policy therefore allows you to build up a cash reserve.

It is not advisable to buy a life insurance India without advice from an insurance advisor. There are many hidden costs and commissions that might come up after you buy the policy. To prevent being a victim of unexpected costs, your best option is to hire an insurance advisor.

The amount that you need to insure your life for might be difficult to assess. There are a number of factors that you should take into consideration for this process including your income, your income sources, the number of dependents, your debts and your spending patterns. In order to determine the amount that you should insure your life for, you should multiply your annual income by a factor between five and ten. Once you take these factors into consideration, you can determine if a term plan or a whole plan will be best to meet your needs.

1 comment:

  1. There are several points to keep in mind when you are buying life insurance. Once you know and understand these, you will be able to get the most from your life insurance policy.
    Car Accident Injury Compensation

    ReplyDelete