I realized the importance of financial literacy very recently when I started reading books on finance & personal development. As an engineer straight out of college I understand that there are a lot more like me who are yet to come to the same realization. Here's are my personal notes on some of the topics in Personal Finance.
I also wrote an article on a very handy personal finance book, check it our here.
Pointers on Term Insurance
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Term cover premium would increase roughly 6-7% every year. So buy as early as possible.
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Term cover premium is fixed at the time of buying the policy.
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Discounts for paying premium for only 10-20 years instead of full duration is equivalent to 6% interest on the premium.
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Prefer paying monthly than annually. (5% discount isn't worth it.)
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Opt-in for the Life Stage Benefits, they are basically option to increase your sum assured on different life stages like marriage or child birth. Find more details here.
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STAY AWAY FROM ENDOWMENT PLANS.
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Don't buy accidental benefits rider.
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Critical Illness rider is not required if you have a health insurance plan.
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Opt-in for disability rider, it saves you from paying any premium in case of any permanent dissability.
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Don't choose buy back plans, they can be very costly.
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Don't think of Term Insurance as an investment.
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To gauge a insurance company, check their claims settlement ratio & solvency ratio.