Published on January 13, 2014
Which Policy Type Should You Choose?
With multiple categories of insurance plans available, choosing a category that matches your needs will allow you to realize the policy benefits to the maximum. Let’s see how you can match your need with an ideal category…
Consider This Scenario… You wish to buy an insurance policy that will give you a large cover at minimal costs Or You wish to secure your child’s future Or You wish to build long term savings through market linked returns with an insurance cover Bearing in mind such different needs, life insurance companies offer multiple products, each designed to meet a specific need.
Benefits of Choosing a Tailored Product By choosing a product category that matches your need, you can be rest assured that your goal will enjoy the safety net offered by life insurance, in case of all eventualities. Remember, there is no one-fit for all. Your needs and life stage are different from your neighbor. Hence what may be the right plan for him, may not necessarily be the best for you.
Broad Insurance Categories
Categories Though each product category has multiple policies, all policies can be broadly categorized as follows - Life Insurance Categories
Understanding The Different Categories Term Plans Endowment Plans Enjoy a large insurance cover at minimal costs In case of death during the policy term, your dependents will receive the policy sum assured If you outlive the policy term, you are not entitled to receive anything Enjoy protection and savings On maturity or death, the policy pays out the sum assured plus accumulated bonuses Unit Linked Insurance Plans (ULIPs) Enjoy market linked returns and speed up the wealth creation process A portion of the premium paid is towards the insurance cover while the remaining is invested in an investment fund of your choice On death or maturity, depending on the plan features, the payout includes higher of the policy sum assured and fund value or both
Understanding The Different Categories Pension Plans Child Plans Build a corpus for your retirement that will allow you to enjoy financial independence Based on the frequency of your choice, receive a regular stream of income from the same Secure your child’s future even in your absence Receive periodic payments that will give you financial support when your child reaches his/ her milestones On death of the parent, in most cases the basic sum assured is paid, future premiums waived and the periodic payments continued to be made as per the plan Loan Protection Plans Secure your loan liabilities under all circumstances On completion of the loan repayment, the insurance cover ceases or can be easily surrendered, depending on the plan terms In case of death/total and permanent disability during the policy term, the policy proceeds can be utilized to settle the outstanding loan amount
Before you buy any plan… Ask yourself do you need insurance? If “Yes”, how much cover? The cover will depend on your needs and your premium paying capacity. Choose a premium amount that you can comfortably pay over the policy term. Finally, ask why you need insurance? Once the specific need is clear, pick a category that best serves your need. The policies available within the chosen category will be the right policy for you.
Disclaimer Insurance is the subject matter of the solicitation. Please read the sales brochure carefully before buying the plan. IndiaFirst Life Insurance Company Limited. IRDA Registration No. 143. Registered and Corporate Office Address: 301, 'B' Wing, The Qube, Infinity Park, Dindoshi - Film City Road, Malad (East), Mumbai 400 097. www.indiafirstlife.com. SMS <FIRST> to 5667735 SMS Charges apply. Toll free No 1800 209 8700.
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