Not insured? Go get it! | Latest News India - Hindustan Times
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Not insured? Go get it!

None | BySantosh Chowdhury
May 28, 2006 12:00 AM IST

EVER THOUGHT of your retirement or an unfortunate tragedy in the family? Who will meet the financial needs of your family then? It?s time you thought of taking a Life Insurance policy however late it is in life. Remember also that life insurance helps secure the financial future of all your nominees.

EVER THOUGHT of your retirement or an unfortunate tragedy in the family? Who will meet the financial needs of your family then? It’s time you thought of taking a Life Insurance policy however late it is in life. Remember also that life insurance helps secure the financial future of all your nominees.

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HT Image

So before opting for a life insurance policy, it becomes imperative that one identify the major financial needs of the entire family in future years.

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In this case, the concept of Human Life Value (HLV) can help in deciding how much life cover an individual should opt for at any point of time in his early life.

The HLV takes factors like the individual’s annual income and expenses along with the inflation rate into consideration while calculating the value.

After having identified the need for insurance, the next step should be to finalise a plan that will cater to an individual’s financial needs. Generally there are two kinds of insurance plans: Term Plans and Savings-Based Plans. A term plan insures the individual for a high sum at a low cost. A term plan makes for a good fit in all individuals’ portfolios, irrespective of their profile.

Before actually zeroing in on an insurance plan from any life insurer, the individual must compare policies across the insurance sector. This will help evaluate which insurance plan is best suited to their needs.

One way of doing this is by contacting a qualified insurance agent and asking him for a comparative analysis of insurance plans offered by a wide set of life insurers. Another way is by visiting the websites of different companies and scouting for relevant information.

The ideal term for an insurance plan for a 27-year-old person can be the one that offers him the necessary cover at the cheapest cost with the flexibility of terminating a policy to meet financial needs in case of an emergency.

In fact, the comparison made between various insurance plans being offered by various companies would help the individual plan his long-term financial needs at the cheapest cost of acquiring a policy.

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