There are many types of life insurance policies available in the market. Recently, Bank Bazaar said in a report, calculating adequate life insurance coverage according to your needs can be a challenging task. But, this is necessary considering the needs of the family after you.
It is difficult to predict what is going to happen to you in the future. This difficulty increases when you are the only earning person in the family and who will take care of the family in your absence. To face these situations, it is important that you take measures to meet the financial needs of your family.
Life and health insurance are two essential means to protect the family from financial crisis in difficult circumstances. In today’s times, it is necessary to have both these policies. Their objective is to provide financial help to you and your family amidst various crises.
Life Insurance…10 times the income: There
are many types of life insurance policies available in the market. Recently, Bank Bazaar said in a report, calculating adequate life insurance coverage according to your needs can be a challenging task. But, this is necessary considering the needs of the family after you.
- Life insurance coverage should be at least 10 times your annual income.
- While buying a policy, you should keep in mind your age, current earnings, financial goals of the family, needs of dependents, inflation, existing assets and liabilities.
- As your age and responsibilities increase, you should continue to seek additional coverage.
Health Insurance…Protecting Your Savings
- A financial product that protects your savings against unexpected medical expenses following an emergency such as illness or accident. This includes many types of medical expenses (hospitalization, surgery, tests).
- There are certain factors that must be considered when deciding on adequate coverage in a health insurance policy. These include your family’s medical history, expenses incurred during last hospitalization, health inflation etc.
- You should take a policy in which the coverage is at least 50 percent of your annual income.
- You can increase the coverage through top-up according to the changing needs of your family.
Buying a policy at a young age is beneficial
Sweety Manoj Jain, investment advisor, says that the right time to buy life or health insurance is when you are young and healthy. During this period you get more coverage at lower premium. Both of these are products that are important to your financial portfolio and provide financial security in difficult times.
