Purchase of Term Plans and Mistakes to Avoid - C. S. Sudheer review Bangalore
If you want to buy a term insurance plan then you should
take the right steps and avoid the mistakes. Let us explore the details in this
C. S. Sudheer review
of term plans.
Mistakes to Avoid
When Buying Term Plans
Mistake #1: Purchase
of Insufficient Cover
Before taking insurance cover you need to take into
consideration your other liabilities so that cover you take is sufficient for
your needs. As per C. S. Sudheer Indian Money review, you
should also examine the effect of inflation on your insurance cover and plan
accordingly.
C. S. Sudheer Indian Money
CEO also states that the general rule is that sum assured for the term plan
should be a minimum of 10 times more than annual income you have. For instance,
if you are earning five lakhs annually then then term plan should be for 50
lakhs.
Mistake #2: Opting
for Shorter Terms
According to C. S. Sudheer review Bangalore,
many people opt for a short term policy since these policies carry a lower
premium. But, you need to keep note of the fact that such strategy will prove
to be wrong in the long run.
This is because, at the end of the policy cover you will
have to purchase a new one and the expenditure you will have to make on buying
one will increase as your age moves up. As such, it is always better to
purchase term plan of a longer duration.
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