Insurance planning is a part of financial planning. It helps
you grow and protect wealth. Choose the insurance plan which best suits needs
and make sure you are covered for all eventualities. Life insurance, health,
car and home insurance are crucial to protect life and costly assets.
Different types of
life insurance plans
Term life insurance
plans: This is pure risk cover with no survival benefit. It helps transfer
wealth to nominees on an unexpected demise. You pay a premium for a sum
assured. On an unexpected demise within the term of the plan, death benefits
are paid to the nominee.
Endowment life
insurance plans: An endowment plan offers the twin benefits of insurance
and savings. It helps save over a period of time and on surviving the tenure of
the plan, you get sum assured + bonus. On death within tenure, sum assured + accrued
bonus is paid to nominees.
Money back plans:
It’s a type of endowment
plan. You get a percentage of sums assured at regular intervals instead of
a lump sum at maturity. Regular intervals can be tailored to meet important
milestones.
Ulips: Unit
Linked Insurance Plans also called Ulips offers the twin-benefits of insurance
and investment. Part of the premiums is assigned for mortality cover and the
rest is invested in equity, debt or a combination of both depending on the type
of Ulip.
Whole life insurance:
It provides cover across the life of the insured or up to 100 years. The sum
assured is decided at the time of availing the policy and is paid on death of
the policy holder along with bonuses.
Retirement plans:
Insurers sell annuity plans. An annuity plan protects from the risk of
outliving income. An annuity makes a fixed stream of payments helping retirees
get money in retirement. If you want payments immediately opt for immediate
annuity plans. If you want pension payments after a specified time, opt for
deferred annuity plans
Review Your Insurance
Plans with Indian Money
IndianMoney.com Review advises you to review
insurance with change in financial goals and life situations.
If assets have increased (you have a new car or house) avail
more insurance. Life
insurance helps in wealth transfer. You need life insurance across working
life. You don’t need life insurance after 60 as you have net worth to tide over
most crises.
Indian
Money Bangalore advises a health insurance plan even if you are covered
under a Company group insurance plan.
An increase in liabilities means more life insurance.
Increase coverage under term life insurance if you have liabilities like a home
loan
Visit here for more about Indian
Money Insurance Plans
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