How Much Money To buy insurance
How Much Money To buy insurance: Find Out
Those Who Buy Insurance Only By Following The Agent’s Words. After a Few Days, You Realize That It Has Gone To The Account Of Loss Instead Of Profit.
There Are Many People Who Buy Insurance Only On The Advice Of The Agent. After a few years, when you Realize That Your Insurance Expenses Are So Much Higher Than Your Income That You Can’t Spend Money On Anything Else In Life, You End Up Pouring a Lot Of Money Into Premiums. Many pay a Lump Sum Premium Just To Save Tax. After a few days, you Realize That It Has Gone To The Account Of Loss Instead Of Profit.
That Doesn’t Mean Don’t Insure. Insurance Must Be Done. But think About How Much You Will Do Only Then Step On The Path Of Buying Insurance.
Don’t Go For A Premium Of More Than 8% Of Income
Insurance is Not Savings. You Buy Insurance. You Must Buy. And You Buy It To See That If Something Happens To You, Those Who Depend On You Will Not Suffer. But if a Large Part Of The Income Goes To Insurance Premiums, Then What Will You Save, And How Will You Meet The Satisfaction! So it is Better To Keep The Premium Amount Within 8 Percent Of Income. And Instead Of Thinking Of Insurance As A Way To Save, Just Buy Term Insurance As a Way To Meet Your Life Risks. You Will Get Much More Insurance At The Same Premium. And Choose Another Path To Save. Keep In Mind This Is a Rule Of Thumb. That Does Not mean That The Increase From 8 Will Not be 9 Percent. But The Thing To Keep In Mind Is Not To Pour A Large Part Of The Income Into The Premium Itself.
Financial Liability
Pay 8% of Income As Premium. Not More Than That. Just Because This Rule of Thumb Is Established Doesn’t Mean You Have To Spend This Money on Premiums. Keep It Above Your Limits. Now Calculate Your Financial Liability. It is Not The Same Cost That You Currently have. And not all the Necessary Money Has To Come From Insurance. Because You Have Savings. So Calculate How Much Financial Liability You Will Incur By Going The Insurance Route.
Financial Goals
Liability is Not Everything. You also Have Financial Goals In Life. Make Home Children’s Education. Money Will Be Needed To Meet That Need At Different Times. If You Take Out A Loan For This, You Will Also Need Money To Cover It Now. Therefore, This Amount Should Be Kept In Mind While Buying Insurance. And Since Goals Change With Age, It is Better To Choose A Term Plan In This Case Too.
Income And Liabilities Change With Age
Insurance Amount Is Not One Time. Less Income at Younger Age, Less Liability. As Income Increases With Age, So Does Liability. The Amount Of Risk Also Changes. At 25 You Don’t Need To Think About Your Children. But At The Age Of 30 Many Feel That Need. And Then The Number of life risks also Changes. So The Insurance Policy Has To Be Filled, New Insurance Too. So the Deposit Amount Increases With Lower Premium But The Coverage Of The Term Plan Can Be Increased Further.
