Bangalore: As soon you become 25, and start handling your own money, elders, family and friends starts to prophet you about the need of an insurance policy. You ask your financial advisor and he suggests you some policies by saying, “They are good insurance products”, and you end up buying any one. Before you commit such mistake, have a look on these tips which will help you to know about what kind of insurance you need, suggested by Lovaii Navlakhi, CEO of International Money Matters. These tips will surely make you smart enough to take your own financial decision.

1. Calculate the amount of insurance required

he amount of insurance required for the future is to be carefully chosen. You should calculate the amount of insurance required according to your lifestyles, your loan requirements or repayments, your financial goals in life etc. bring all these criteria together and then carefully determine the amount of life insurance you need. It should be adequate enough so that you don’t have to worry about the ifs and buts later – “What if you are not around with your family, what if they need medical emergencies, will they be able to lead a healthy lifestyle etc.”

2. Decide on the type/types of products

Once you decide upon your cover amount, you should decide upon the type of product your insurance should be. Will it be a saving product or term policy? Or will it be a pension policy or an investment product, or a combination of these?