- Buying life insurance policy, even though you have no dependants.
This is the first fact; you need a life insurance policy ONLY if some one is depending on your income. If you are fortunate to have no dependents, then just ignore life insurance.
- Don’t buy any other insurance policy, except a pure term term life insurance.
Never buy any policy, which is NOT a pure term life policy. A pure term life policy will cover your life at the cheapest price. (Buy this only if some people are depending on your income)
Do not even touch any unit linked policy or any other child plan of endowment policy or money back policy as all of them have high charges and lower returns for you, all of them are designed to make the sales person and the insurance company rich and you poorer!
- Don’t ignore mediclaim and personal accident policy!
Mediclaim policy should be the FIRST and MOST IMPORTANT policy you should buy even before you buy pure term life insurance.
Costs of hospitalization, in case you fall ill or meet with an accident are very high. Buy mediclaim and personal accident policy immediately! Only then If you have money left, go for pure term life insurance (only if you have dependents)
- Don’t delay or avoid paying premiums on mediclaim, personal accident and term life insurance on time.
Remember, by delaying or by not paying at all, you are losing very valuable insurance cover and you will have no insurance cover, if some adverse event happens to you or your family!
Don’t buy any insurance policy, just because your family member or friend is telling you to!
Always remember, buy these 3 policies ONLY (in the order of priority)
First priority– Mediclaim (this will cover hospital bills)
Second priority – Personal accident (this will cover if you lose your limbs due to any accident)
Third priority– Pure term life insurance (ONLY if you have dependants)
All the best for achieving goals!
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.