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how do i choose the right life insurance policy for me

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Identify your needs!!

When you go shopping to a mall, you pick up things knowing you have a use with them, right? Sometimes, you also purchase things you don’t actually need (it’s called impulsive buying). Insurance is not different.

Although impulsive buying of insurance policy (or buying solely on recommendation from your agent or even buying solely to save tax), can prove quite expensive.

Each life insurance policy serves a unique purpose – only life cover, only wealth creation and both.

If you find it hard to figure out your exact purpose to buy a life insurance policy, the below illustration will be handy.

  • Protection for Dependants

    – Traditional term Plan, Traditional term Plan (with decreasing term cover for loan liability), TROP (Term Plan with Return of Premium), Joint Life Plan (for couples);

  • Children’s Education & Marriage

    – Endowment Policy, Whole-Life Policies, Child ULIPs, Type II ULIPs;

  • Periodical income for miscellaneous expenses

    – Money-Back Plans;

  • Retirement Corpus

    – Endowment Policy, Type II ULIPs;

  • Regular income during Retirement

    – Immediate Annuity Pension Plans;

Once you have decided on the right kind of insurance, do a comparative study of similar policies being offered by different insurance companies.

Want to know the popular policies under the above categories?

Click here!

About the Author:

Priya Rao is a Certified Financial Planner and a personal finance enthusiast. She can be reached at expert@investmentyogi.com

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