As soon as we start doing a job, our parents tell us to secure the future by investing in the right insurance plan. An insurance plan offers comprehensive coverage against a range of illnesses and diseases and benefits like saving taxes and securing a financial future, among others.
Everyone has different needs and wants, and depending on their goals and salary, they should plan to protect their future with a good life insurance plan. You should do adequate research and write down your life goals to wisely choose an insurance plan that is ideal as per your needs. It would be best if you penned down both short-term and long-term goals along with various life stages like marriage, children, home loans, and others so that an insurance plan will offer ample financial security to you and your family against unforeseen situations.
There are various types of life insurance plans. Still, it would help if you comprehensively read about them before investing money to be aware of the sum insured, maturity date, the value of premiums, and other factors. Some important life insurance plans, that you can consider include:
- Term Life Plan
If you are the only earning member of the family and want to secure your family’s financial future, you must invest in the correct term plan. Term plans are reasonable, and the cost of premiums is meager as compared to other insurance plans. Term plans offer comprehensive coverage against a wide range of diseases and provide multiple benefits like tax savings and high sum assured at a low premium. You can cover your family and protect them with an annual premium of around INR 10,000 to INR 17,000 annually for a sum of INR 1 crore. A term insurance plan offers a safety net to the policyholder and the family against financial obstacles and unforeseen situations. In case the policyholder dies, the sum insured amount is given to the family. So, even in the absence of the policyholder, the family is financially taken care of. You can get the estimated term life insurance quote with the help of alife insurance calculator.
- Retirement and Child Plans
You experience many life stages, like marriage, children, home loans, and others. It would help if you were financially robust and secured to plan your life well and build a financially secure future for yourself and your family. A retirement plan is a long-term goal, and you need to start early to enjoy its benefits. When you turn 60 years of age, you can receive a lump or get paid annually and lead a financially happy life in your old age. As a parent, you must plan your child’s future right from education, higher education, marriage, and so on. You must invest in a good child plan so that you will receive a lump sum or get paid periodically to secure your child’s future when he or she is 18 years old.
- Endowment Plan
Saving money is an excellent habit, and this must be inculcated very early in life. An endowment plan is one of the best ways to invest money securely, and it offers insurance protection to the policyholder. Endowment plans are preferred as it provides dual benefits. You can choose to receive a hefty amount at maturity or choose to be paid annually so that you are financially secured. This plan is best for those people who receive a regular salary and can pay timely premiums.
- Whole life insurance plans
One of the safest and best ways to secure yourself and your family financially is by investing in whole life insurance plans. It is an excellent plan as it offers life coverage and helps in wealth creation over time. This plan provides insurance till 100 years of age.
- Unit-linked Insurance Plans (ULIPs)
If you seek to increase your wealth, save taxes, and want life insurance protection, you must invest in ULIP. It is one of the best and safest ways to secure your and your family’s life.
Now when you the different types of insurance plans, it is time to select the one that can meet your requirements. Ensure that your family is financially protected even if you are no longer around. Use a life insurance calculator to determine the premium that you would need to pay to get the desired sum assured in case of your chosen policy.