Out of several life insurance plans, decide carefully to choose insurance policies. Keep in mind the below-mentioned factors before arriving at a decision to take whichever type of policy .
Keep in mind the number of dependents in the family. The insured amount can be less if only your spouse is dependent on you. It should be more if there are children or/and parents because the total house expenditure is more. Thereby, you may need a larger amount for the insurance.
Always keep in mind the liabilities and goals. If the insurance money falls short of paying off all liabilities then it is worrisome. Also, the insurance amount should be as per the long-term and short-term goals.
You must have clear objectives such as education, marriage, owning a house, etc.Decide on the type of lifestyle you want your dependents to live after your death. Insurance covers and hence the premium also depend on that .
It is always tempting to go for a large amount of life insurance money. This is because it ensures the family’s safety. However, the premiums are also high. So take care of what you can afford to pay .
Can Insurance Companies Keep the Premium without Paying the Life Insurance Cover Amount?
Two, other than the insured’s death, s/he also receives the insurance amount on the completion of the policy tenure. The arrangement mentioned in the policy decides this.