Nowadays, insurance is no longer limited to the whole life policies or traditional term insurance India. From the last decade, insurance industry has brought a wide range of choices with a range of plan features. Below mentioned information helps buyers to select the right plan:
- Need of Term insurance India
If person has dependents on him financially, then term insurance policy is necessary to support policyholder’s loved ones in case of breadwinner’s unfortunate demise. This investment tool helps to save money for education, marriage of insured person’s child. It gives tax benefits to the insured person.
- Where to Start
It is advisable for buyers to understand your needs and current financial position. Evaluate insurance needs by making a list of requirements based on priorities. Also, person may aim to get tax benefits or may need money towards a future financial commitment.
- Right Time to Buy Term insurance Policy
Do not forget that insurance requirements of an individual change with every life stage. Therefore, purchasing online term insurance for whole life even in case buyer is currently a young professional is a wise decision.
- Endowment Plan
During the policy period, sum assured paid to the beneficiaries in case insured person dies or in case insured survives the complete policy tenure. This option is available with a savings element. As compared to term insurance for whole life, premiums are higher and used to gain more profits or bonuses.
- Term Plan
Under this plan, life cover is available for a limited period and claim is paid to the family members only in case the assured dies within the policy tenure. It is known as low cost plans and premium amount is collected till the end of the insured period.
- ULIP
This insurance combines the benefits of a mutual fund and a term insurance for whole life. Returns on maturity could differ based on the underlying fund performance. On death, beneficiary gets the sum assured or fund value whichever is more.
- Whole Life Plan
It offers life coverage for the whole life and claim is received by the family on the policyholder’s demise, irrespective of when it happens. Cost of this policy is little more than term insurance policy.