Sunil Dhawan writes on personal finance topics including insurance. Having worked in insurance companies in the past, his insights have benefited readers to make informed decisions while purchasing insurance plans. (MyInsuranceClub.com)
Many people buy a term insurance policy without estimating the actual requirement of life cover. Buying a term insurance plan for inadequate coverage may not serve the purpose for which it is purchased.
Depending on the period of stay in a hospital, the cost of hospitalization can run into a few lakhs of rupees. Those who had health insurance policies saw the insurance companies pay up the hospital bills.
For anyone with financial dependents buying a term insurance plan is a must-have even before a single rupee is invested for long-term goals and will remain the most important financial decision in one's life.
A term insurance plan is a tool to help the surviving family members maintain the same standard of living. In a way, it ensures that there is a replacement of income even if the bread earner is not there to support.