Invest in Life Insurance, Invest in Peace of Mind

To the uninitiated, Life Insurance is often a blur of paperwork associated with minimum liquidity but maximum security. To the well informed, Life Insurance serves as a liquid, robust investment with moderate to high returns, lifelong security and smart savings. Like any investment, it requires research, study and periodic monitoring to maximize benefits.
Flexibility, security and growth are the hallmarks of a good investment, and Life Insurance satisfies each criterion. While traditionally Life Insurance served the singular purpose of providing for the kin of the bereaved, today, it has grown and adapted into a savvy savings and investment tool.

If you have decided to invest in Life Insurance, it is essential to understand your requirements and the benefits of each type of insurance.
There are 2 stages to selecting and investing in a Life Insurance Plan.

1. Understanding the Benefits of Life Insurance
Selecting the right Life Insurance policy will ensure that you enjoy both long and short term benefits. While every Life Insurance Policy provides full protection to the beneficiary against the risk of death of the Insurer, it also serves as a smart investment and savings instrument. A few of the benefits of Life Insurance include:

a. Policies from reputed companies are accepted as sole security against loans
b. Section 80C of the Income Tax Act provides for Tax Rebates against Premiums
c. Selecting a plan with insured principal amounts will guarantee security of investment

2. Choosing from the various schemes and options available
Classified by benefits, liability and method and frequency of returns, Life Insurance is of 6 main types:

a. Term Plans offer Insurance for a fixed sum in the event of the Insurer’s death during the tenure of the plan.
b. Endowment Plans offer Life Insurance while simultaneously serving as a savings’ tool.
c. Whole Life Plans involve payment of premiums throughout the life of the Insurer with the beneficiary receiving the coverage amount, interest and accumulated bonus upon the death of the Insurer.
d. Retirement/Pension Plans are savings plans which provide lump sum benefits or monthly income after retirement.
e. ULIPs (Unit Linked Insurance Plans) offer potentially higher returns in Life Insurance by investing in market-linked instruments
f. Children’s Plans provide savings and investment opportunities to fund higher education, weddings, etc.
Armed with this information, a detailed study of Insurance Providers, fine print, premium structures, etc. will enable you to choose the Policy that works best for you.
Life Insurance
Business planner and online marketing manger employed with Bharti-AXA Life, for more information on Life Insurance Products that suits your needs visit the site devoted to Life Insurance Company.

By Nail Ramp
Published: 9/9/2009
 
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