Insurance for your 20s!

nsurance is a vague game.

You assume that tragedy is going to hit (though you don't want it to) and so you pay the insurance company an amount. In return, they promise to help you out financially if your nightmare does come to pass, which you sincerely hope and pray doesn't.

Ironically, if the tragedy does occur, you (or your family) gain from the policy. If it does not, you lose. And the entire policy turns out to be a waste of hard-earned money.

Yet it is a must. But, where you can be smart is by picking the right insurance cover.

If you are in your twenties, either single or newly married, then a term insurance policy is your best bet.

How it works

What you are expected to do

All you have to do a pay a premium.

Premium refers to the amount you will have to pay the insurance company. This could be a one-time payment or a periodic, annual payment.

What the insurance company is expected to do

The company will cover you for the amount you are insured.

So, if you have taken a term insurance policy for Rs 10,00,000, then should you die, this is what the insurance company has to pay up.

Who benefits?

The beneficiary. This refers to the person/ s you have named in the policy; they are the ones who will get your insurance money.