Optimal Insurance coverage explained by IndiaFirst Life Insurance

Optimal insurance coverage refers to the best possible insurance coverage that a person can get. The optimal insurance coverage, quite obviously, therefore, defers from person to person. This is mainly because the insurance needs of one person are different from those of another person. To understand what your optimal insurance coverage should be, and what kind of plan you should buy from a leading insurer like IndiaFirst Life Insurance, you have to analyze a few factors. In this article, we discuss the factors and help you understand the concept of optimal insurance coverage. Take a look.

What are the factors that determine the optimal insurance coverage?

The factors to consider when deciding your optimal insurance coverage include :

Dependents :

Life insurance is bought with one main objective – to secure the futures of your loved ones after your death. So you have to see how many dependent family members you have. Your insurance coverage should be large enough to provide for all of them in your absence. Thus, you will have a higher optimal insurance coverage if you have dependent parents, a spouse and two kids as compared to your friend who is single and lives with his mother.

Financial liabilities:

Next, you have to calculate what your financial liabilities are. If you have a few loans to repay, you will have to take that under your optimal insurance umbrella. This is because if you die suddenly, your kin should not have to dip into their savings to pay off your liabilities. Your insurance coverage should be able to take care of that. In addition to this, you also have to take your monthly bills, the costs of your children’s education, your parent’s healthcare expenses, etc into consideration.

Other incomes :

The sum assured from your life insurance policy should work to replace your income after your demise. If you are the sole breadwinner of your family, your optimal insurance coverage will be higher. If however there are other sources of income in the family, like your parents’ pension, spouse’s salary, rent from a property, etc, the coverage can be lower.

Health condition :

An accident can happen at any time and you can lose your life unexpectedly. However, under normal circumstances, a healthy person is likely to live longer than a person who is battling an illness. Your optimal insurance cover will be higher if you are unwell. It, therefore, is always a good idea to get a health test done before buying a life insurance policy from a big insurance provider life IndiaFirst Life Insurance. The test provides a realistic picture and helps you in calculating your optimal health insurance coverage.

The bottom line

So as you can clearly see from the points mentioned above, the optimal insurance coverage is different for everybody. Keep the above-mentioned factors in mind when you calculate your optimal insurance coverage. It is very important for you to know what your ideal coverage should be before you buy a life insurance plan from IndiaFirst Life Insurance or any other insurance provider of your choice. If your insurance coverage is insufficient, your loved ones will not get the maximum benefits out of it in your absence.