It is time for making resolutions for the new year. Let us take an oath for having a safe and secure new year this time. Start by taking a protection plan for yourself. Life insurance helps you not only provide safety to your dependents but also helps in creating wealth for many years to come. When it’s related to providing safety for your dear ones, then what are you thinking? Go for an insurance plan right now.
However, you need to keep these 5 common points in mind before taking an insurance plan:
Take only that much cover what you need
To have an accurate amount of insurance cover you need to identify your liabilities, your financial goals of life, and how much are you investing towards that goals. What are your monthly expenses? Include all your daily financial expense which you think is necessary for maintaining the standard of living for your dependents in case of your absence. Never buy insurance more than what is required because it only increases you premium amount liability.
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Quit the habit of smoking
A very important resolution for a new year is to quit the habit of smoking as it increases your premium amount for the same cover. Smoking catches double expenses cost, one that you are spending to buy the cigarettes and other is the extra amount you are paying for the same coverage.
Take the smart insurance plan
Compare the insurance plans online before buying. Get advice from your financial adviser. It is better to disclose all your issues to your adviser whichever you are facing related to health sickness, critical illness, smoking or whatsoever it may be before buying a plan. If you do not do so, your beneficiaries may find it difficult to claim the amount after your death.
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Read your policy documents carefully
Buying a policy by blindly signing the documents will not serve any purpose unless and until you read the terms and conditions carefully. Take help from your adviser to know all the hidden clauses mentioned in the scheme. Beware of the false trap and catchy tag lines. If you know and have read the document, it becomes easier for your nominee to make any claim.
Let your nominee know the details
If you die without disclosing the amount of cover to your beneficiary, then there is no point in taking the plan. Nobody will get the benefit of your insurance cover in that case. So, it is always advisable to tell your beneficiaries/ nominee about your insurance cover because it helps them at the time of claiming insurance from the insurance companies.