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Running a household has become so expensive, that you cannot even think of missing a single day at work for the fear of your salary getting deducted. You can barely manage within your salary, and missing a few days would make the situation worse. Just think then, what will happen if you happen to face an untimely demise. We shudder to think of such situations, but we need to face them bravely. Confronting such truths will help you to make preparations for your family when you’re gone, so that they don’t have to struggle to make the ends meet. Insurance is the best way to ensure that your family is safe and financially backed even when the earning member isn’t there anymore. If you choose insurance without proper research and planning, you might end up being one of those people who are deceived and cheated by insurance companies. Since it is so critical for your family, and will take care of your family members’ future, you should choose your insurance plan wisely, and ensure that it is the best insurance plan for you. Let’s look at a few ways to assess the insurance plan: Whole insurance or term insurance? There are two broad types of life insurance available out there. The first one is known as the whole/permanent life insurance, whereas the second one is called the term life insurance. Whole life insurance is much longer in duration, and the premiums are more expensive. However, if the policy expires before the person does, the entire principal sum is paid with interest to the policy holder. On the other hand, cheap term life insurance is for a short term and if the policy holder expires within that period, the family members get the money. Else, the money is not obtained. How much insurance cover do you need? Every family has a different lifestyle, and the monthly expenditure depends upon the same. While some families might be very outgoing and therefore spend a lot on clothing and eating out, there might be other families that just spend on basic necessities and save a large amount of their earnings. Depending upon the lifestyle, your insurance coverage can vary. You need to choose one that can sustain your family after your death. Bigger the insurance coverage more will be the premium per year. But what is necessary shouldn’t be avoided! Life insurance policy is available for the entire family too. You needn’t buy just one for yourself. In case of the untimely death of any individual, all the money paid under their policy will be duly given back to you with interest, in case the maturation period is over. In fact, insurance is a great way to invest money for long term too.
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