New to Life Insurance, completely overwhelmed by the options available!
29 Oct, 2021
by Fleming D'costa
Hi everyone! I'm new to life insurance or anything about being financially literate. I am considering life insurance. I have a funny worry of dying and leaving my parents with nothing if something happens to me. I want to start looking into life insurance and what my options look like for a 25 y/o working man. I am totally overwhelmed by the no. of insurance plans and companies out there!
I’ve so many questions like what happens if I die if I don’t finish paying it off? How long does it take to pay off life insurance? What is the best company to look into?
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Dear Fleming
We all carry three risks :
1. Dying early
2. Living too long
3. Medical expenses
We can either manage it on own by creating emergency fund or transfer the risk to a pool which is called insurance .
It makes sence to transfer risk to an insurance company and we must buy four insurance products :
1. Term insurance where sum assured is paid to family in case of untimely death . There is no survival benefit . By paying less than Rs 10000 per annum , you get a cover of Rs 1 crore . So on death , your family will receive Rs 1 crore and there will not be any future liability of premium .
2. Accumulation for living too long can be done through any saving plan through which you buy an annuity plan.
3. Health insurance for medical expense , have a combination of base plan plus super Top up .
4. Supplement your cover with Accidental death and disability cover . Supplemrnt a critical illness cover .
All thesr planning would give you a peace of mind and provide longivity to your life .
All insurance companies are good and regulated by IRDA . Find a good advisor rather a company . Ask as many questions as possible and resprct tge knowledge and not the art of selling