Smart 😎
Buy Life Insurance the Right Way
📊Weekly Market Snapshot
Nifty remained volatile throughout the week, struggling to hold gains amid global uncertainties and weak sentiment.
Despite brief recoveries, selling pressure dominated, with Nifty closing lower in three out of five sessions.
Broader markets saw mixed performance, with midcaps showing resilience early on but ending weak.
Sectoral trends were uneven, with metals gaining while autos and IT lagged.
With caution prevailing, Nifty’s next move hinges on global trends and FII activity.
💡Weekly Family Financial Wisdom
Buy Life Insurance the Right Way: 3 Smart Strategies to Save Money
Buying life insurance is about securing the future of loved ones, not about fancy investment products or hidden costs.
1. Pick a Pure Term Plan, Not an Investment Plan
A term plan offers high coverage at a low cost, ensuring financial security.
Endowment plans and ULIPs mix insurance with investments, leading to higher fees, lower transparency, and reduced coverage. Insurance should protect, not multiply risks with complicated investments.
A pure term plan focuses on what matters: maximum protection for minimal cost.
2. Calculate the Right Coverage
Too little insurance leaves a family vulnerable. Too much strains the budget.
A simple formula works best:
(Annual family expenses × 20) + Outstanding loans + Future financial goals − Existing financial assets
For example, if expenses are ₹6 lakh per year, loans total ₹20 lakh, and a child's education goal is ₹15 lakh, but savings are ₹10 lakh:
Coverage needed = (₹6L × 20) + ₹20L + ₹15L - ₹10L = ₹125L (₹1.25 crore)
This approach ensures loved ones have enough money when it matters most.
3. Be 100% Honest in Your Application
Hiding health issues or lifestyle habits to lower premiums can backfire.
If the insurer finds out later, claims can be denied, leaving a family without financial support. Medical checks and background verifications are thorough, making honesty the best policy.
Being truthful guarantees smooth claim approval when needed.
A well-chosen life insurance plan gives peace of mind. Get the right coverage, be honest, and secure the family's future.
🛠️ Question of the Week
⚠️Disclaimer
This newsletter is for educational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
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