With the population exceeding one billion people, only a paltry 35 million people are covered under life insurance. No doubt that the figures are abysmal but a host of reasons can be attributed to this state of affair. Some key reasons include ignorance, lack of adequate knowledge regarding the cost and benefit of life insurance policies along with almost non-existence facilities.
Lets look at some of the most widely-opted life insurance plans.
Term Insurance
Term life insurance plan are those plans that only give minimal cover for risk; it does not have additional features built in such as savings. These are
life insurance policies which are as straightforward as can be. It is the most suitable option for people who want to shell out minimum premiums to insure their life. Term life insurance plan are the simplest and cheapest options.
These are type of policies which are taken for a fixed term or duration to insure the dependents and the family members against the probable loss of income that might occur in the event of the untimely demise of the owner of the policy. It is always advisable that one must contemplate on taking out a term policy at a young age, as the earlier you take the policy the lower would be the premium that you pay.
Investment plans
Famously known as ULIP aka Unit linked
life insurance plans. These plans offer dual benefit of insurance along with the fruits of investment flexibility. Units are individual elements which forms part of investment aspect of the policy whose underlying asset forms the basis of such valuation as mentioned in the policy document. These are plans which are found in the good books of the taxman in India. Tax benefits that accrue out of such policies have been a major draw for investment plans.
Pension plans
The ever rising inflation index has the potential to throw the life of even a well-salaried person off guard. With no sign of rising prices abating one can only imagine what will be the realm of living when the person would reach the age of retirement. India has a Burgeoning population of elderly people with the majority of them having negligible access to any sort of retirement provisions.
Pension plans are those
life insurance policies that will have a positive impact on your future by way of anchoring your financial ship to stability. As against common notion pension plans, with insurance component, is not just for old folks, but almost anyone can opt for it with the long-term objective of securing his/her future.
