The financial security of your family s not only a core responsibility of an adult life but also crucial duty of any human being. In this cut throat competitive society, several obstacles could crop up after the death of the sole breadwinner of the family. Starting from the funeral proceedings to the daily meals, the dependants will face a dead end if they are not covered by a good insurance plan. Each person is in need of a separate sort of policy, hence the insurance plans are of a wide variety.
All these plans come tailor made for each of the three broad socio-economic strata- the higher income, middle income and the lower income group. Affordability is taken into account while giving maximum benefits possible to each individual based on their income, savings, financial assets etc. Rich or poor irrespective, one should be able to secure the livelihood and health of their dear ones in their absence and that is what these plans try to address.
The ones who are living paycheck-to-paycheck can’t really afford to put all their money into one insurance policy as that would leave them with almost nothing to continue their daily lives with. It is better to make avail of the many insurance plans that can be bought at really low initial minimum costs. These not necessarily offer extensive benefits but provide decent coverage at low premiums.
It is advisable for a low income individual to go for an insurance plan that has flexible premium paying plan. Plans have paying terms like monthly, quarterly, half- yearly and yearly. One has the advantage of paying annually instead of monthly though in that case the premium increases. It might be costlier but also provide more time to save up and is free of the monthly hassle. Also a plan that provides tax benefit under the Income Tax Act is a wise move as this offers tax deduction.
Emergencies and crisis crop up irrespective of your income bracket. And this stands true for most of the middle-class hustlers who are fighting each day to keep afloat amidst the ever-increasing cost of living. The middle-income strata is the niche market that is most targeted by all policy companies and they have numerous policies to choose from.
It is better to choose a plan that provides maximum benefits irrespective of price. A middle-class person would be more at ease paying small premiums each month instead of a single premium plan. As it is better to invest small amounts instead of putting a dent in the pocket all at once. The minimal savings then either form a rainy day fund or is used to invest in investment plans or better – on insurance plans.
Market crashes wait for no one. Thus a high flying corporate job can be gone in a second and you will be left with nothing or too little to afford your expensive lifestyle. More than often not, it is common for the other members of the family to not focus on building up on their income due to the high paying job the other family member has. This leads to an entire loss of fortune on event of the sudden demise of the member they are dependant on.
Higher the premium, higher is the sum assured and so is the case with the plans that high income individuals usually choose. The ability to pay a single time premium enables them to stay hassle free of monthly payments. The rest is usually invested on corpus funds for further investments like purchasing a house, opening up a business or to build a trust fund for the children.
Thus there’s something for everyone and one just needs to do a thorough comparison before choosing their plan.
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