You can choose from various insurance plans in India. However, it is of utmost importance that you understand your requirements budget before you choose a plan. You need to go for an option that best fits your needs. If you have excess funds, you can divide them into multiple insurance plans.
Always start with a term plan
A term insurance plan is the first insurance cover you need to buy for yourself. If you have not invested in any plans until now, you need to start with a term plan. It provides a cover for a specific period and in case of death of the policyholder during this period, the nominee will get the entire sum assured. This plan is designed for those who are looking to secure the future of their loved ones. It offers a comprehensive cover at a low premium. One of the top benefits of term life insurance is the tax exemption. A policyholder can get a tax deduction under Section 80C of the Income Tax Act, 1961 up to INR 1.5 lakh.
You need to choose a plan keeping your family’s requirements in mind. It does not make sense to invest in a plan, which does not provide an adequate cover. It also makes no sense to invest in a plan, which has a high premium beyond your capacity. Hence, include all the costs and funds needed by your family before you choose the sum assured.
Return-oriented insurance plans
After you have invested in a term plan that is ideal for your needs, you can then opt for an investment-linked plan, which delivers good returns in the long term. You can choose from pension plans and unit-linked insurance plans. You need to remember that these plans have a minimum lock-in period of five years and a maximum duration of 40 years. Check death benefits in the scheme and then choose a plan.
For the seasoned investor
After you have invested the funds in good insurance plans, you can then your balance savings in mutual funds. If you want high returns, mutual funds are a good bet. They offer liquidity and tax benefits. Most importantly, you do not have to be involved in the risks of market movement. You can get the help of a brokerage company to l help you choose the right fund and manage your investments.
When you decide to invest in term insurance online, you need to consider your requirement before making a decision. A term plan offers financial security while ULIPs offer investment based returns and pension plans will help build a corpus for your retirement.
Terms plans are an ideal way to secure your family financial wellbeing. Hence, you must invest in such a plan first, followed