How should we evaluate a suitable life insurance plans in India for ourselves? Here are some tactics that may help you have an ideal term insurance plan according to your needs and help you choose a suitable plan from a wide variety of options available:
- Term insurance
Through term insurance, you can choose the security for a set time limit. In the event of death or permanent disability (if the benefit has been proposed), the benefit will be paid to your dependents. In Term Insurance, after the insured person has crossed the insurance period, no payment is usually payable.
- Whole life insurance
You are guaranteed lifetime protection with full life insurance. A Death benefit is paid so you can be assured that even after your death; your family will be protected against potential financial losses. This is also an ideal way for your Successors to create heritage.
- Endowment policy
An Endowment policy is a savings-related insurance policy with a fixed maturity date. If during this period, unfortunately, your death or disability occurs, the maturity amount will be paid to your beneficiaries. If you remain alive during this period, the amount due on the policy maturity will be paid.
- Money back or cash back plans
Under this scheme, a certain percentage of the maturity amount is returned to the assured as a continuous survival benefit. The balance amount is paid as the maturity value after the expiration of the period. Life risk during the policy term can be covered for the full maturity amount despite payment of survival benefits.
- Children’s Policy
These types of policies are taken by the parents/ children for the benefit of the child. Through such a policy, the guardian can plan to receive funds when the child reaches various stages in life. Some insurers also provide an exemption from premium payments upon the death of the parent / proposer during the policy period.
- Annuity (Pension) Plans
When retired, the employee ceases to receive his salary while his regular income earns his needs. Payment of retirement benefits like provident fund and gratuity is lumped out, which are often expired or do not invest wisely so that there is no regular income available to the employee in the days after retirement. Therefore, the pension is an ideal method for retirement provision because this benefit is in the form of regular income. During our earning period, when we receive regular income, it is preferable to have a plan for the later days of old age. Financial independence during old age is very important for everyone.
There are two types of annuity plans
- Immediate annuity
Annuity payments start immediately from the insurance company in an immediate annuity. The purchase price (premium) has to be in only one instalment for an immediate annuity.
- Deferred annuity
Under the deferred annuity policy, the person pays regular contributions to the insurer by the date of vesting (vesting) age / authority vesting (vesting). He also has the option to pay as a single premium. This fund is accumulated with interest and funds are provided on the date of issue of authority.
The insurance company manages the investments of the funds and the policyholder is given the option to redeem 1/3 of this fund on the authorization age / authorization date. The remaining 2/3 of the fund is used for an annuity (pension) purchase for a person.
- Unit Linked Insurance Policy
Unit Linked Insurance Policies (ULIPs) combine investment and security and offer your premium investment options and flexible features. In unit-linked schemes, being an investor, the investment risk portfolio is borne by you. Usually, this policy provides you with the options of funds in which you can invest. You also get the flexibility to switch between different funds during the policy term.
The value of the ULIP is linked to the prevailing value of the units, in which units you have invested in the fund, and it depends on the execution of the fund. In the event of death or permanent disability, the policy provides the maturity amount (the extent to which you are covered) so that you can be assured that your family will be safe in case of sudden financial loss.
Edelweiss Tokio Term Life Insurance provides complete support to its clients regarding selecting an ideal term plan and now, with the incorporation of technology and the expansion of the Internet use, having an Online Life Insurance or Online Term plan is also easy and is preferred by most of the clients with a hectic schedule.