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Best Life Insurance Policy

alex monto

Everybody hopes for the best, but it is always better to prepare for scenarios that might not be ideal. This is why a backup in any situation always helps. This is especially true for life. A life insurance plan can offer financial support to your loved ones in your absence. Keep reading to find out how.

Who can purchase a Life Insurance Policy?

Life insurance in India is a vital financial tool to have for all age groups. A life insurance policy can provide your loved ones with financial support as well as offer you adequate returns that can be used to plan for various individual goals.

Apart from the age groups mentioned above, there are several other types of people who can benefit from a life insurance plan. These include the following:

Smokers: Smokers can be prone to health issues. Buying a buy life insurance policy can ensure sufficient financial protection for their loved ones. However, smokers must inform the insurer of their lifestyle habits before purchasing a plan.

Disabled individuals: Disabled individuals can also benefit from a life insurance plan. However, they need to undergo some medical tests before buying a suitable insurance plan.

People with pre-existing medical conditions: Individuals with pre-existing medical concerns can enjoy financial security with life insurance. However, it is vital to share the details of such medical conditions with the insurer.

Types of Life Insurance Policies

Term Insurance Policy

This is the simplest type of life insurance policy. It pays your family a sum of money in case of your death, during the policy term. It does not pay anything if you survive the policy term. However the premiums on this type of policy tend to be low. For instance a monthly premium of just ₹ 1,057 can get you a life insurance cover of 1 crore rupees with regular income payout option (for a 30 year old, non-smoker) for 40 years(exclusive of taxes)

Endowment Policies

Policies other than term life insurance, are called endowment policies. These can in turn be divided into participating, non-participating and unit-linked.

Non-Linked Participating Endowment Plan

This type of policy lets you ‘participate’ in the profits of the life insurance company and get a share of them. It pays your family a sum of money on your death but it also pays you an accumulated sum, if you survive the policy term. The survival payment or benefit is linked to the profits of the life insurance company.

alex monto
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