Life Insurance: Insurance is a product that should be taken only by assessing your own financial needs. It is difficult, but it can be done. Global data shows that on an average a person buys seven insurance policies throughout his life. But there is no data to know what kind of policy he takes. Every person should try to take two or three policies. Let’s know about some important life insurance policies…
This is basic life insurance. Once a person starts earning and contributing to household expenses, he should immediately take a term insurance policy for the maximum period available. As time passes and income increases with age, one should increase the cover by purchasing more term plans. The premium in this policy is less and cheaper than others. If you are the earning member of the family, then the term policy protects the entire family from possible financial loss in the event of an accident.
Whole life plan
If you are the only earning member of your family, then you should take a whole life plan for lifetime coverage. Because you are the only member of your family, your family needs protection and savings cover for the rest of their lives.
Decreasing Term Plan
It is becoming popular in recent times because more people are taking the liability like a home loan. This is because if you die before repaying your loan, then the pressure of the loan comes on the family. Therefore, the bank or loan disbursing company insists that you take insurance cover to take care of your loan. Therefore, if you have such a plan, then the amount of insurance is reduced with decreasing liability of the loan.
An insurance plan is the best solution for income after retirement. This does not require a person to remain independent and depend on another for expenses.
There is less interest in it but there is a definite return. It is a medium of savings associated with life cover. People with low risk consider it as an investment medium in which there is guaranteed security of capital.
ULIP or Unit Linked Insurance Policy
When investment protection becomes as important and returns are viewed according to market performance, ULIP is the best solution. The unit-linked insurance policy also gives market-linked returns along with the death benefit of the insured person.