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.
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