Opting for a Life Insurance plan is always a sensitive issue. Few people feel it is mandatory whereas others think it is not necessary; however it does leave you safe in the knowledge that your family are financially secure after you’re gone. Friends and relatives might come forward to give moral support but generally do not turn up regarding money matters. This is a common scenario in today’s era.
Hence Life Insurance is the only solution to the above problem. It provides financial assistance to your family and off-springs so that they can succeed and fulfil their dreams in your absence.
Payment Protection Insurance (PPI) is another type of insurance which can be utilised during a financial crisis or unexpected mishap. PPI claims is used to pay loans during emergencies or at a time when you are unable to make your payments. In cases such as a person loses his job, is bedridden due to an accident or prolonged illness or in the worst case, if a person has passed away. During such crises the PPI claims take over the responsibilities to pay your loan payments on time and help you to avoid paying penalties due to delay.
Here are the top five tips following which you can save money on life insurance premiums:
Low investment is not always the best one:
The customer must always be sure of the policy before choosing one. It must be noted that the plan that has the least investment is not always the right choice. Accurate calculations must be done and analysis must be made as to whether your investment is in the right hands and whether you can achieve the monthly payments.
This is another important factor of consideration while you choose your insurance company as well as the policy. Deductions of tax are dependent on the proposal chosen. Always take the plan that best suits and satisfies your necessities. Also the tax regarding the premiums of the PPI is deductible. Here you can claim the tax paid.
No load policies are insurance plans with low cost. As mentioned above a detailed study regarding the proposal is mandatory. These are generally purchased from advisors. These advisors take the complete fee at once and do not depend on commissions.
Deciding on the strategy that best benefits you is the key goal. Do not choose a guaranteed issue policy if you do not need it because you will be paying high premiums.
Extend you policy:
If you feel your requirement has changed then add proposals to your existing plan. Expanding your plan is more beneficial than buying a new one.