Buying an insurance for the first time can be an intimidating experience. Especially, since it is a big decision to make. You would want to get the best insurance to financially safeguard your family or assets from any unforeseen circumstances. Consider these 5 tips before you choose an insurance.
Crucial tips for buying an insurance for the first time
1. Understand why you need an insurance
An insurance is essentially a financial security for your family and loved ones. It is also a security for your assets like car, home, goods and so on.A well-planned insurance will save you, your family and your business from uncertain events. In case of life insurance, you can get tax deductions under section 80C of the Income Tax Act (ITA).
2. Choose an insurance that fits your budget and requirements
No matter what budget you have in mind for an insurance, there will definitely be one that will suit you the best. It is important to know that there are 2 primary kinds of insurance:
Life insurance: It covers unexpected circumstances like sudden death, illness, and income during retirement.
General insurance: It covers property loss, motor insurance, accident insurance and so on.
3. Insure your health first
An individual is more likely to suffer an illness as compared to death. Imagine a situation where you are bed-ridden for several months, what will be your source of income during that time? An investment in health insurance will take care of your financial needs during such situations.
4. Only buy from a trusted insurance company
If you are going to rely on a company for such a responsible task, ensure that they are trustworthy and have fair policies. To check their reputation, you must do a proper market research, and compare the policies from other insurance providers as well.
5. Calculate your requirements
Before you purchase an insurance policy, you must calculate the expenses. Be realistic and truthful while doing so, this will help you in setting a budget. Don’t let the selection of an insurance plan stress you out. A calm and calculative mind will help you take the right decision.
You can also visit YES BANK's website to know more about their Savings Account, Fixed Deposit and Personal Loan.