Life Insurance -  Life insurance is one of the most popular savings/ investment vehicles in India. Ironically its probably the least understood too. An insurance policy offers much more than just tax planning and investment returns. It offers you the ability to plan for unforseen events that could affect your family's financial problem adversely. 

 

Evaluate your life insurance needs Life Insurance is one of the most popular savings/ investment vehicles in India. Ironically, its probably the least understood too.

An insurance policy offers much more than just tax planning and investment returns. It offers you the ability to plan for unforeseen events that could affect your family's financial profile adversely.

Your financial profile and needs are different from that of your neighbour. And the same is true for your insurance needs.

However, irrespective of the differences, the number of dependents you have and their financial needs are the most important factors to consider.

Issues to consider while evaluating the above factors include:

Insurance options range from policies with low premium that offer you almost no returns to those with high premium that effectively offer post-tax returns of around 8% to 9.5% p.a.

These returns are at the lower end of fixed-income returns available today and hence are relatively unattractive.

We recommend you buy an insurance policy skewed towards investment returns only if you are in the high-tax bracket, prefer to invest in low-risk, fixed-income options and have exhausted all the other such investment options available.

As you grow older, you may not have as many dependents (your children would become self-dependent) or your wealth may reach a level where it can support your dependents’ financial needs in the event of your death.

These possibilities bring us to the interesting question on whether you should insure yourself for whole life or for a limited term. Obviously, the cost of insurance for the latter is lower.

We recommend you insure for whole life only if you never expect your wealth to reach a level where it can support the financial needs of your dependents.

How long do you want to pay your insurance premium for? Key factors this decision could depend upon are -

 

Besides understanding how much insurance you need and selecting your premium-paying term, you need to consider some other key factors, such as -

LifeLong is designed to suit your individual requirements, no matter which life stage you are at, and changes as your needs change during your entire life. For the same premium, you can opt for a higher life cover (protection) and lower savings or lower life cover and higher savings. The choice of protection-savings mix is yours, and the decision can be based on your priorities and age. You can also cover your spouse under the same policy without any additional expense through a joint life policy (first death basis).

For more details >> www.avivaindia.com/product_catalogue/productdetails

Pure Term Insurance

LifeShield is a low cost life insurance plan which guarantees to pay a lump sum amount in case of your death during the term of the policy.

LifeShield can be purchased for any life between 18 to 55 years of age. However, the maximum age of the life insured at expiry of the policy is 65 years.

The minimum and maximum policy terms are 5 years and 40 years, respectively. The minimum annual premium is Rs.2,000 and the minimum sum insured is Rs.500,000

For more details visit >> www.avivaindia.com/product_catalogue/productdetails

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The Conquering Life Plan is a comprehensive critical illness cover that helps bear the financial burden of a critical illness. This is a unique health insurance benefit that helps you to protect yourself and your family against health and lifestyle risks.

For more details visit >> www.ingvysyalife.com/conqueringlife

ING LifePlus is the easiest way of taking unit linked insurance. While it allows you to invest and manage your investments at your own pace as per your risk profile, its inbuilt Enhanced Protection Cover feature ensures that your life cover keeps increasing throughout the policy term and ensures that you and your family are well protected.

For more details >> www.ingvysyalife.com/IngLifePlus

What can this plan do for me?

As a parent, you always want to give all the good things in life to your child. See your children grow into successful individuals, fulfill their dreams at every important stage of their life and help them grab all the opportunities at the right time.

ING Vysya life helps you to achieve this. Be it for their computer training classes, dance lessons or anything that makes them experience the good things in life. No matter what happens to you, your child's future is always taken care of.

To know more visit >> www.ingvysyalife.com/creatinglifemb