Insurance requirements are dynamic and hence, don’t just forget about online term insurance once you buy it. In fact, review your coverage needs at least once in two years and after major event of your life such as marriage, buying a house with a loan, child’s birth etc. when liabilities or responsibilities increase, then it means you need a higher life cover.
Majority of people prefer this plan because it replaces income which may be lost in case of breadwinner’s demise. Don’t wait for miracles, just have practical approach to buy term insurance India that can take care of basic expenses in the future and insure important goals as well.
Keep a simple portfolio of policies which is easy to manage. Insurance professionals suggest to opt for simple life insurance plans to receive the much-needed financial security for the loved ones.
Besides term coverage, people have options of money back, endowment, pension, unit linked insurance and wholelife plans to select from. Except life insurance, most policies include an investment component. Under traditional plans, the insurer is bound by some certain regulations of how they can invest the insured’s money.
Mostly, they can invest in definite corporate and government securities. Therefore, after accounting for the charges, returns tend to be quite low under traditional plans such as money-back or endowment policies between 5-6%. These returns may be more for longer periods. Returns which policyholder can get under these plans are completely tax free.
ULIP plans provide higher returns but the whole corpus is subject to market quirks. However, investors can receive double digit returns in equity markets for longer duration. Many people think that unit linked insurance is expensive.
It is not true at all. Don’t invest so much money in traditional plans because it could reduce your potential returns. Generally, online term insurance policies collect more premiums in the initial years.