Important Insurance Thoughts for Young Subscribers

Important Insurance Thoughts for Young Subscribers


 Getting good knowledge on insurance is a must for all to live in a better way. No one in this world generally exempts from insurance. One or other way, all of us have policies. There are 'n' number of policies available today. Of course, a person not required to subscribe all the policies than required one but, whenever subscribing the required insurance, keep the following thoughts in mind to tune your policy in a better, structured way and to take maximum benefit from it.

 Before moving to the points, I like to introduce some of the important insurance plans to fresh up your mind. Starting with traditional policies we are going through term plans, child insurance plans, motor insurance, unit linked policies, retirement plans, mediclaim policies. These are considered as the most famous policies today. Now will take look on the important areas to care off with each these plans.

1. Traditional Plans - Know the influence of inflation

 There is no special feature to enable with traditional insurance plans. It is totally debt based scheme and the insurer get fixed insurance coverage throughout the term and finally receive the promised sum along with deserved bonuses. Whenever getting forward to subscribe any traditional insurance plan, ensure you have learn the maturity benefit connected to inflation. Understand how the increase of inflation going to affect your final amount. If you are planning to subscribe a traditional plan for investment purpose with a pre-set goal in mind, understanding the influence of inflation at the end of the term could help to avoid panic situation like not able to meet your pre-set goals!

2. Term Plans - Understand your real need and worth

 Term plan should start at the earliest in the young age. As age counts, its premium also increases. A good term plan should have taken by considering the 6 times or annual salary and need to consider the future increases too. Proper nomination, riders, all to be sets in a well manner to avoid future difficulties.

3. Child Insurance Plans - Let the Insurance Company Handle the Future of Your Child

 Child insurance plans generally known as unit linked child plans. Investing on child insurance plans are a must to secure the future of your kid. The most important point to remember when taking child plan is. one should opt Premium Waiver option. Without selecting this free option, child plans are more risky in the side paying premium. Once you opt the Premium Waiver, insurance company will pay all the future premiums in case of the sudden demise of the policy holder that is you.

4. Motor Insurance - Save your money and let company pay to others

 Whenever taking motor insurance, ensure you are opting third party rider. Incase of any accident by your mistake, the victim get paid by the company if you opt this option.

5. Unit Linked Policies - Make more money for long term

 Unit Linked Policies intend to invest continuously for long term to create wealth from the stock market. Ensure you have selected equity option when the stock market is down and switched to debt fund when the market is in the peak. Ensure you have found the best policy compares to others in the similar kind available in market. Your policy should provide maximum benefits, covers, less in costs.

6. Retirement Plans - A way to the safe retirement life

 When opting retirement policies, select a policy without insurance cover and start it at the earliest. Your policy should be the best available in the market. This can be identified by comparing the features of similar kind policies in the market.

7. Mediclaim Policies - The way to meet unexpected expenses

 Mediclaim policy buyers should understand all the terms and conditions in the manual. A mediclaim policy with wide network of free hospitalization facility should be opted. Whenever going for a mediclaim, ensure you have selected family floater to protect you and entire family members under a single umbrella of policy which has maximum benefits.

 Above are the important points to remember when buying the insurance policies. Missing of any or all of the features associated to the above policies can make your policies useless for short or long run.

 Readers, if you feel I have missed any points please comment to inform me.




Insurance: A Guide

"Remember kids, I have life insurance" - Adam Savage

This is a guest article from Tatyana Levin

These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).

 The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.

A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed.  But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.

Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.

 These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason.  The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.

The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.

About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com