Most of us are averse to taking risks, especially if we are not in a ‘proper’ office job but are self-employed. While there is a continued stress to retain work, one cannot shake off the constant feeling of insecurity: what if an emergency strikes? Are you prepared for it and if you need to opt for an insurance policy, what should you opt for and what kind of budget should you have. This blog explores these questions with a special emphasis on those who are self-employed and need to make an informed decision for their own future as also their family’s.
The first thing to know is that you can opt for an endowment policy. Basically, in this type of policy the policy holder can insure himself for a specific period of time or till his death. Thereafter, the money in the policy is given to his nominee, if he has any. Otherwise, if he outlives the term of policy, the insurance will make him a pay out of the full sum assured. Some plans have a limited period for which the policy holder can pay a premium for your endowment plan. But what you need to know here is that for this benefit, you may have to cough up a higher premium. Why it works more in the favour of those who are self-employed is that it factors in a major worry: would a self-employed person be able to pay premiums for a specific period? This way, if you can actually plan your premium while taking into consideration your monthly income, expenditures, current and future liabilities and also your savings. Also, you may not have the mental burden and stress of paying yearly payments of your policy till the end of the term.
This type of policy is ideal for those who own small businesses or are in work-out-of-home-jobs, artists, painters, performance artists, sportsperson etc.
Advantages
• This is a form of disciplined savings.
• Handy in case of any medical or other emergency.
• An endowment policy has a triple advantage. Firstly it takes care of your loved ones in the event of your death. Then in case you have an investment goal then it fulfills that. Lastly, an endowment plan can also be used as a corpus to fund a pension or retirement plan.
• Tax benefit.
• Risk free.
• Peace of mind guaranteed.
We live in a time of multifarious choices which makes zeroing into the right type of policy a very stressful and confusing affair. To avoid this, it’s best to go to an online aggregator instead of an insurance agent. This is because not only will you be saved from any extra paperwork or costs, but you will be able to make a more informed choice based on what is available in the market. Online, you can compare premium rates, advantages, disadvantages and varied sops. Also the internet saves you a great deal of time, is an efficient medium and provides you greater transparency than any insurance agent, would.
The first thing to know is that you can opt for an endowment policy. Basically, in this type of policy the policy holder can insure himself for a specific period of time or till his death. Thereafter, the money in the policy is given to his nominee, if he has any. Otherwise, if he outlives the term of policy, the insurance will make him a pay out of the full sum assured. Some plans have a limited period for which the policy holder can pay a premium for your endowment plan. But what you need to know here is that for this benefit, you may have to cough up a higher premium. Why it works more in the favour of those who are self-employed is that it factors in a major worry: would a self-employed person be able to pay premiums for a specific period? This way, if you can actually plan your premium while taking into consideration your monthly income, expenditures, current and future liabilities and also your savings. Also, you may not have the mental burden and stress of paying yearly payments of your policy till the end of the term.This type of policy is ideal for those who own small businesses or are in work-out-of-home-jobs, artists, painters, performance artists, sportsperson etc.
Advantages
• This is a form of disciplined savings.
• Handy in case of any medical or other emergency.
• An endowment policy has a triple advantage. Firstly it takes care of your loved ones in the event of your death. Then in case you have an investment goal then it fulfills that. Lastly, an endowment plan can also be used as a corpus to fund a pension or retirement plan.
• Tax benefit.
• Risk free.
• Peace of mind guaranteed.
We live in a time of multifarious choices which makes zeroing into the right type of policy a very stressful and confusing affair. To avoid this, it’s best to go to an online aggregator instead of an insurance agent. This is because not only will you be saved from any extra paperwork or costs, but you will be able to make a more informed choice based on what is available in the market. Online, you can compare premium rates, advantages, disadvantages and varied sops. Also the internet saves you a great deal of time, is an efficient medium and provides you greater transparency than any insurance agent, would.
Source: http://www.insuringindia.com/
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