A step-by-step guide. The birth of a child increasesyour responsibilities. It also means additional expenditure and a whole new set of needs and wants. As a parent, you would want to ensure that all of your child’s needs, from diapers to a degree, are met. The bottom-line is, come rain or death, you need to safeguard your finances so that you can achieve all these goals.
In all probability, you hadn’t given insurance a thought until your child was born. The following tips will help you simplify the process of choosing the right insurance and the things to take into consideration before buying it.
Step 1: Prioritize your insurance needs
Discuss things with your partner and list down your goals. Identify what you need to compensate with your insurance plan. Remember that your policy needs to cover the expected outflows towards childcare, education, health care, child’s wedding, debts and your own retirement. Also, decide on the yearly amount you can allocate towards insurance without straining your budget.
Check our free Life Insurance Calculator to see how much life cover you need.
Step 2: Search for the best policy for your needs
Make a list of the benefits (cover, riders, payout periods, etc.) you need your policy to offer. Compare them with the policies available in the market. Shortlist using basic criteria like company performance, claim settlement record, dependability and ease of buying.
Step 3: Buy your policy
Once you have clarity about the type of insurance you need and you finalize the insurer, proceed to buy the policy by filling up the policy proposal form.
For a financially secure tomorrow, it is highly recommended that both parents be insured regardless of their employment status.
To read more on how much cover is enough, click here
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