You must be thinking that what a term policy is. Term policy is nothing which is very expensive or difficult to get a hold of, it is just like any other life insurance policy you should get in the market, just that people are not aware of the term insurance policy as it is not advertised in the market. It is not even for people who are looking for estate planning or charitable events so therefore term policy is not really different from any other insurance policy.it has a normal period of time and premiums which you are given by them and you have to make the timely payment which you do for any other insurance companies. But the biggest thing here is suppose you are the policyholder and somehow by any accident or incident you die so the money which you have put in the company or in the insurance will automatically go to your nominees and you will not lose any money but it is also the most easiest and most convenient.
Now you may probably think that how does a term policy actually work then you must know that while you are buying a term policy your insurance company from whom you are buying it will promise you that it will pay the beneficiaries an amount in case you die in the policy term and an exchange you pay premium every month to the company. -Term policy therefore is something you cannot adjust the coverage amount in a term policy if you find that the amount is in enough then you will have to buy a term life policy additionally to add extra coverage for your needs. - The biggest point which you must keep in mind while buying a term policy is that the calculations for life insurance rates are more about the life expectancy and therefore life insurance policy gets expensive day by day. - Now another thing is if you have outlived a policy term, insurance terminates, and you should buy another policy if you want the plan to continue. Therefore, the yearly premium for another plan could be a little expensive and inconvenient for you therefore keep in mind to select a suitable term period early life policy if possible. There are several term insurance policies out there provided by the insurance companies within these they involve level premium which is a policy time period which has 20 years. This premium says as there are many term policies given to you the alternative option to renew the coverage at the end of the period without going under any kind of medical exam. Another biggest term policy is annual renewable term. In this you get a coverage for 1 year with an alternative of renewing it every year for a particular duration for at least 20 years and with this policy the rates also rise every year and you renew and it is calculated on the basis of the probability of you die within the next year.
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An investment plan is a procedure where one matches the financial goals by investing in their financial resources. It is important to make the proper investment for proper financial planning and they are essential to one another. There are many avenues of investments open to us today and they can be done through the form of bonds, equities, properties or the good old fixed deposits. It is important to start early and have a strong foundation and as one’s age increase, they can make the necessary changes to cover the other aspects of their lives.
One has to be first and foremost sure about the purpose of their planning. It could be ensuring the safety of the family, it could be wealth building or it could be preparing for one’s retirement. Hence, it is important to determine that whether one will need the returns immediately, whether one would need it for post-retirement or whether one would not need it at all and the money is saved for the family instead. It is important to prioritize the goals before one starts making investments. Hence, if one is 55 or older one should opt for a retirement plan and this will be a good way to take care of your future expenses and then will also take care if you have any further deposits or withdrawals to make. It will also help you identify when you would need the money the most in your life. It is important to have a time frame in mind to set long term and short term financial goals. Most of the investment plans require a minimum investment amount and before one starts investing, they also need to figure out whether they would be able to pay the premium amounts consistently through the tenure of the policy. If not, it would be a good idea to invest in single premium plans, one-time investment plans or policies which have flexible premium options. For those who have a high-risk appetite, they could be investing in mutual funds, which can be started with very small amounts but they can be increased gradually. Buying stocks and bonds is also a good idea and if you do not have any risk appetite and want to be safe, then you can opt for fixed deposits in banks or post offices or opt for schemes like Public Provident Fund, all of which has guaranteed returns. Hence, it is important to figure out one’s preferences and financial goals before an investment plan is drawn up. |
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April 2022
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