Most frequently asked questions about insurance savings plans

1. Most frequently asked questions about insurance savings plans

2. Many doubts seem to pop up in our minds when we think of buying an insurance plan. The features of different policies offering different benefits can make the process even more confusing. This article attempts to answer some of the most frequently asked questions about insurance savings planto help an individual make the right choice. How do I know if I need an insurance savings plan? Insurance saving plan is a necessity to achieve mid to long term financial goals. An insurance savings plan is the way of investing funds over time to ensure that the accumulated wealth can be used to achieve bigger goals in life. Some insurance savings plan comes with monthly benefits whereby the policy pays out lump sum cash. This is good for someone who needs extra cash to ease financial burdens on a monthly basis. Alternatively, this monthly cash benefits can also be accumulated to get annual interests and added to the maturity payout at the end of the policy term. Some of the best insurance savings plans also provide coverage against death, accidents and permanent disability.

3. Should I get an insurance savings plan when I am young? When you are young, you have minimum financial commitments. Investing in an insurance savings plan can be a great way to save for your future. When you invest in an insurance savings plan at a young age you can invest for a longer tenure which will reap huge benefits in the future. Should I get an insurance savings plan for my spouse? With marriage comes a financial commitment. It is advisable for couples to get an insurance savings plan so that the burden of achieving mid to long term financial goals does not fall upon the shoulder of a single person. What is the difference between term insurance and insurance savings plans? Often there is confusion between term insurance and insurance savings plan. However, both plans are different. Term insurance is designed to provide financial coverage for a particular period of time and an insurance savings plan provides a savings option that not only helps achieve your desired financial goals but also covers unforeseen events like death and disabilities of the insured.

4. Should I get my parents covered with an insurance savings plan? The choice of getting an insurance savings plan for your parent depends on the circumstances that may befall them. Depending on your parents’ financial situation and needs, an insurance savings plan can form part of their retirement plan. What are the factors that help determine the premium of my plan? The premium of your plan will be decided upon the type of plan chosen, the policy term and premium term. It is important to know that there is a range of insurance savings plan available that caters to different tenure and financial goals.

5. Is insurance savings plan the right choice to save for my child’s future education funds? Yes! Insurance savings plan can be a great way to save for your child’s education expenses in the future. Most insurance savings plan gives you an option to save regularly for up to 20 years while protecting you against unfortunate event such as disability or death. Getting an insurance savings plan at the early stages of life can bring huge benefits. However, you are never too late to buy an insurance savings plan. All you need to do is look for the right insurance savings plan that offers a huge range of benefits.

6. Thank You Original Source : Most frequently asked questions about insurance savings plans