Buying Life Insurance – A Balancing Act

wealthymattersThe conventional financial wisdom is that people best serve themselves by purchasing an online term insurance plan and investing the rest of the premium in diversified equity mutual funds. I have a slightly different take on the matter. Let me explain. Many readers have remarked on the difference between my stand and that of other experts.

If you are young, just started working, have little savings, come from a family with little savings, are the sole or main bread-winner of the family and have many dependents, an inexpensive term insurance plan is your best bet. Even as you work towards building wealth, you don’t put your loved ones at the risk of destitution, should something happen to you.

Also if you are older but have to provide for home and children and perhaps have mortgage and car loans etc. outstanding, you’d do well to increase insurance cover via a term plan for the duration of these loans to ensure that in your absence unpaid loans don’t add to your family’s miseries. Read more of this post

Why Does An Online Term Insurance Plan Premium Differ Between Companies?

wealthymattersWith an ever increasing awareness about term insurance policies, there is a lot for a person to choose and gain from.Insurance companies are  making it much easier for people to purchase term policies. One such initiative is online term insurance that allows you to seek life cover from the comfort of home, a fuss free way to buy insurance!

Statistically, one online term plan is bought every five minutes in India. The number of customers buying online term policies have risen from 500 to 15000 per month. However, there is still great concern among buyers as to why the premium of online term insurance plans  differ from one company to another. Here are the reasons: Read more of this post

Online Term Plans

Online Term PlansIf wealth building,wealth protection,estate planning,legacy planning,cash management etc. are not priorities,then an online term plan is probably the best life insurance product you can purchase.

At long last,the LIC has come up with its own online term insurance plan.The premium as you can see is on the higher side.

Obviously lower premiums are the way to go.But before you decide anyway,go over the exclusion clauses to ensure that all situations that can possibly apply to you are covered,else you will be purchasing an umbrella with holes.Also be certain that if your insurer has been around for more than 10 years,the company has a settlement ratio above 90%,else you are likely entering into a vital contract with a less than reliable partner.


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