Buying a Life Insurance Policy

This is a very appropriate commercial from Religare Life Insurance . I have spoken to lot of my friends and i find that in most cases , they have no idea what kind of Insurance policy they have and they also have very weird reasons for buying, like

• The Insurance agent was a family friend and so i bought this policy
• I was spending too much , so thought of buying this Insurance policy as a saving
• I had to save taxes and did not know any other way to save taxes

Let me ask you a very simple question "Lets say , if tomorrow, you ( earning member ) are no more , would your family ( Spouse, Kids, Parents ) who survive you , be able to make a living based on your today's savings and Insurance claim amount of your insurance policy"

If your answer to this is "Yes" , then you do not have to read further , if your answer is "No" then do read further.

How can a Insurance for say 2,5 or 6 lakhs really help your family that you leave behind, to survive , as these are too small a amount for them to spend a life time on .

Let me take the analogy of a vehicle insurance , when we buy a vehicle insurance , we do so as something that would help us in an emergency and not as a saving tool and i would be glad at the end of the year , if i did not have to use it , but i make sure that i renew it for the next year.

We would have to take a Life Insurance with the same mindset . Only kind of Life insurance policy that would be useful is a Term Insurance Plan or Pure Insurance Plan . These type of Insurance Plan do not give you any returns , but for a small premium per year would give you huge life insurance cover.

No Insurance agent would ever recommend a Term Insurance Plan or Pure Insurance Plan to you as the commission on these type of plans are the least .

So remember that it very important to have Big Life Cover or Sum Insured , as that is what would help your loved family in case of a unexpected event and help your family not only to make a decent living but also see to it that your kids get uncompromised good education they deserve

If you would like to know more about different kind of Life Insurance Policies , click here

You can even buy couple these term plans online

• iProtect
• iTerm

you could probably buy a insurance cover of 1 crore for a yearly premium of Rs.15,000 for a person in his mid thirties., that is how cheap term plans are .