Life insurance is more than just buying an insurance policy. Here are few common mistakes to avoid while buying life insurance.
Not having adequate life cover
Buying of life insurance cover should be based on the actual need. At times, many policyholders buy policies to either save tax or to save ‘some’ money for long term needs. They overlook the right purpose for which life insurance is to be bought which is to replace one’s income in the event of an eventuality and help the family maintain the same standard of living. Under-insurance doesn’t help in meeting the objective of insurance. Ask the insurance agent to help you calculate the ‘human life value’ based on your specific life circumstances and then go ahead to provide for it through proper policies.
Not buying in housewife’s name
It is usually said that housewives or home makers do not require any life insurance as they do not earn and hence there are no family member dependant financially on them. But, consider this. Even if she is not contributing any income to the household, the opportunity cost of her absence in managing the house and children, is quite high.
Although not a norm but life insurers provide cover to them only if the spouse is insured and cap the maximum sum assured to that of the spouse. If both are working still insurance is required
Esta historia es de la edición April 2017 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 2017 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
Understanding Momentum Funds
Momentum funds are a type of investment fund that focuses on companies experiencing positive momentum in factors such as earnings, revenue, and stock price movement.
Risks and opportunities associated with Small Caps
Small-caps are a stock-picker’s paradise.
How to navigate your portfolio through bull market a
Indian equities have been in a bull run for the past four years.
Choosing mutual fund schemes depending on your age to achieve life goals
The choice of mutual fund (MF) scheme might be influenced by one’s risk profile or age.
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
