5 critical checks when buying Life Insurance
How many of us really know whether the life insurance policy that we hold is suitable for our specific needs? Many a times the decision to purchase a life insurance policy is taken considering taxation benefits or we blindly follow the advisor’s advice without knowing whether the chosen plan is suitable for our circumstances. So, what are those critical checks that we need to ensure before buying life insurance: 1) Treating insurance as an investment: Before deciding to buy a life insurance policy, do ask yourself the reason you wish to buy a life insurance policy. If it is to provide financial stability to your family, then go for a pure term plan as this will offer you a higher insurance cover at much lower premium as compared to a unit linked plan or a traditional plan. Here, do note that term plans do not provide any survival benefits. In case you wish to enjoy both insurance coverage and receive survival benefits then you may consider traditio...