Sunday, May 29, 2011

Why you should take high value life insurance?

How often we have all taken life insurances policies for a few lakh Rupees listening to our insurance agents' advise? Most of us don't a life insurance policy for more than 5 lakhs.

This applies to our children who have just joined a college. I happen to read an article in today's Times of India which made sense to me and also gave me fresh insight on investing in life insurance.

Why we take insurance policy, the answer to this remains pretty much the same, but the amount to which one can insure can be as high 50 lakh or 1 crore for a little more premium than what one pays for 5 lakh policy now.

Surprised ? You can check this out with various insurance companies. Take time to compare the different life insurance policies, premium and the assured sum on maturity. You will realize your folly of taking small life policies.

For reasons best known, insurance agents tell you that policies with higher stakes are available only for higher premium. What they don't tell you is that you can increase the period of premium payment so that for less yearly premium, it becomes possible to insure for higher amount.

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