Things to keep in mind while buying your first Life Insurance
23rd September 2014
Just started working and considering buying a life insurance?
Refer to these quick tips to make the best decision.
Author – Mr. Vijay Sinha, CMO Bajaj Allianz Life Insurance
- When a person is young, cost of life insurance is low.
- While purchasing a life insurance plan, remember to cover your debts first.
- Also, financially protecting your family’s/dependents standard of living is important.
Tips for protection from financial worries:
- For a sole breadwinner, a pure term cover is ideally the starting point.
- Your Sum Assured should be based on your total liability and your family’s/dependents monthly expenses.
Tips for investment with protection:
- ULIPs are a very good option for people with good financial risk taking appetite and for those who need to create a CORPUS.
- ULIPs combine life insurance protection with investment and work best for investment horizons of 15 years or more.
- ULIPs provide optimal returns when held for longer period.
- The younger you start saving in a ULIP, the larger the corpus you can build.
- It is essential to make your mind for long term investment of at least 10 years, preferably 15 years or more, if you buy a ULIP.
- For those with low risk appetite, depending upon investment horizon, a With Profit (referred to as Par plans – plans where “Bonuses” accumulate over time) Endowment or Whole of Life plan will be ideal.
Want to know more? Use below tools to find the right life insurance and investment amount to protect future of your loved ones:
- Bajaj Allianz RightInsure Calculator – Determine the right life insurance cover for you ?
- Bajaj Allianz RightInvest Calculator – How much should you invest today, to realize your dreams tomorrow ?