Many people buy life insurance plans from financial advisors. Here are 4 questions that they must ask them about a plan before buying it.
What is the life insurance coverage?
Get your advisor to calculate the life insurance amount your family needs. Then, find out whether the plan provides the required life insurance.
What is the term of the policy?
You need to check whether the policy will provide life insurance benefit till the time your family needs, typically till your retirement. Else, your family will be financially vulnerable.
What is the premium payment frequency?
Annual premium is typically lesser than quarterly and monthly premium. Opt for the mode that suits your finances, helps you pay premiums regularly and get uninterrupted life insurance coverage.
How much tax benefit will you get?
Find out the annual tax deduction for the premium payment under Section 80C of the Income Tax Act. Of course, you need to have life insurance regardless of tax benefits.
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