Gone are the days when insurance
policies were looked upon as a accumulated amount for your old age or a backup
for your loved ones. An insurance policy is in fact a smart way to invest and
save your hard earned money.
-->
Before you decide to invest in
an insurance policy, it is important to understand the term. Basically, a
policy is a contract between two parties: the person seeking insurance and the
company which provides the same in terms of money. During the term of your
policy, the person who is seeking insurance has to pay a certain agreed amount
of money on a timely basis (this amount is termed as the premium). The insurer
on the other hand, returns a lump sum amount after decided number of years or
after the insured person passes away (depends upon the type of the policy). In
certain cases, even the cost of funeral of the insured person is covered by the
insurer company. Insurance can be sought not just for a person but for
properties, cars, homes etc as well.
In order to save your money, you
should choose the policy which suits your need, which is affordable, and which
benefits you the most. Always compare various policies by different insurance
companies before going for one of them. You can take advice from someone but
remember what might be best for a person not necessarily be the same for other.
Also one year's best deal need not be the next year's best deal too. When you
are insuring an asset, do not buy coverage that is more than its worth. Because
this will put huge liability and pressure on you.
If you have doubts and queries
in regards to buying the best suited insurance policy, you should take advice
from a financial planner. These people keep a track of the market and they
study the changing economic trends. So if you specify your needs and
limitations, a financial planner can give you good advice as to which policy
you should invest your money in.
Another monetary benefit is that
the insurers usually offer lots of discounts in order to lure more consumers
and to get people to buy multiple policies from the same company. These
discounts act as money savers and enable you to invest in more than one policy.
Buying n insurance policy will also provide you with tax benefits. You can get
tax exemption and save money.
So the next time you plan to
invest some money in order to save it, make sure you look out for the best
suitable insurance policy option. There are many benefits of insurance when
it comes to covering your assets as well as insuring your and your loved one's
life.
Author: Alisha Martin
Posts
