Buying a new policy is the first investment advise that everyone receives. Here is a quick guide on what to look for in a policy when you have decided to buy a new policy.
First things first, the plan that you wish to buy should have adequate term insurance either built in in a savings and insurance plan or a pure insurance plan i.e. term insurance.
The premium you decide to pay every year also needs a thought as getting a policy is a long term committee and once you get a policy you cannot increase or decrease the premium, term or sum assured.
As Indian we are always encouraged and educated about the proper use of money no matter how much we earn we still somewhere has the janhit of savings. A good savings habit itself is life a insurance against any unseen expenses. A person who saves well can be called a financially literate.
How do you decide which policy to buy first?
The basic rule if saving at early age is to moot for the longest term available. Which is because of two main reasons.
First that since this is just the start of your earning years you salary or income will surely increase over the passage of time.
Second reason for choosing the longest term is that even if for some reason you want to discontinue your savings you still would have stayed invested fir a long period. Another reason on common sense basis is that you won’t be in need of a huge sum sooner in life. So opt for the longest term for your first investment.
Premium and Sum Assured
While choosing the amount to be invested one has to be careful. The investment commitment is long term which means you will keep paying for a long term without getting any returns. Chose a smaller amount in your first investment. Once you get used to it and like seeing the benefits it comes with, you gradually increase your investment.
Buying a LIC policy is not only required but a must. Chose your policy wisely only after doing the basic research. Like reading articles, comparing plans, meeting experts, etc. Get I’m touch with a LIC agent today!