Life Insurance in India

Life Insurance policy offers either a lump sum or a return on the unfortunate death of a person. Therefore, any person whose death would make a monetary loss to another person has a requirement for life insurance plan. 

This must include the following:

• Mortgage Life Insurance Plan

• Any person with dependents

• Key Individuals.

It means any condition where financial loss would be incurred could probably have a requirement for life insurance plan. 

Different Types of Cover:

Term Life Insurance:

As the name suggests, “term life insurance” pays a death benefit only during a definite term period of coverage which generally varies between 10-30 years. Term life insurance is the economical and most monetarily efficient type of life insurance for the majority of young and middle-aged people. The premiums on term insurance plans are considerably small as the possibility that they will die during the period of the plan is low.

In addition, term insurance is suitable for the majority of people since they can choose a term or time-period that will cover them during their time of the utmost financial requirement.

Whole Life Insurance:

Comparing with term insurance a Whole life insurance plan pays a death benefit no matter when you die. Obviously, you frequently have to give premiums for your whole lifetime, as well. For the majority of people, whole life insurance plan gives coverage that is truly unnecessary. Insurance agent often tries to influence clients to purchase whole life insurance plan because of its investment element. A part of your premiums go into a savings fund which grows at a varying rate, based on the stock market’s performance. This generates a couple of supposed profits. However, the premiums you give may be decreased in the future if the savings fund performs well.

Which Insurance Plan To Take?

There are excellent opinions for both types of plans. We would propose that the following could make up the most important considerations:

Cost: Whole Life insurance plan is a more expensive product

Time-Period that cover is necessary: If cover is necessary for a definite time-period i.e. a Mortgage, then Term life insurance plan could be more suitable

Future Plans: If, for example a family is planned, then whole life insurance can provide the flexibility to enhance cover for this or other like situations.