Skip to main content

Best life insurance to buy in 2021 – Mint

NewsColony
Best life insurance to buy in 2021 – Mint

By Parag Raja

The ongoing coronavirus pandemic is forcing the world to adapt to a new reality. We are witnessing a dramatic restructuring of the economic and social order to pave the way for the ‘new normal’. While most Indians viewed insurance as an added expense to their monthly budget, this pandemic has made us realize the significance of life protection and health to sail through any financial hardships. There is a major shift in mindset and customers are increasingly looking at purchasing protection led insurance plans. As Aristotle rightly put it, “It is during our darkest moments that we must focus to see the light.” Thus, the pandemic has also proven to be opportune for customers to choose the right life insurance plan ensuring an individual and their family have adequate financial security in case of an eventuality.

For those considering a life insurance solution, here is what you need to know about a Term Plan

Amongst the several life insurance policies available, term insurance is the most cost-effective plan one can avail. Term plans charge a fixed premium for the policy period and do not offer any added bonuses or maturity benefits in case the insured outlives the term assured. The premium rate for this plan is low as compared to other savings or investment life insurance plans. However before finalizing any policy, consumers should evaluate their need of insurance and opt for a plan which gives them the widest coverage at best possible rates.

Shop around

Most traditional Life Insurance plans entitle customers to a maturity benefit that is pre-decided and specified. Therefore, if a policyholder survives the phase, she/he earns a particular gain from maturity. Life insurance plans primarily differ in terms of price and features. An individual can choose from policy options like, Protection plans, Whole life insurance plans, Money-back plans, Pension plans, Endowment assurance plans, Unit linked insurance plans, and Child plans. It is therefore essential to checkout plans that best suits one’s budget as well as requirement.

Term insurance v/s life insurance

• Coverage: In term insurance plans one can only avail coverage against untimely death. However, most forms of savings or investment life insurance policies have a maturity advantage. They cover both, sum assured to nominee in case of premature death of the policyholder, and maturity benefit to the policyholder at the end of the policy term.

• Premium: Only the risk of untimely death is provided for by term insurance policies. This is why term plans have premiums that are incredibly low and affordable. At competitive premiums, you can purchase high sum assured covers. Other life insurance policies have a lower Sum Assured coverage on death as they promise a maturity gain as well. Thus, premiums are higher than term plans.

• Coverage duration: Term plans come with long-term durations of coverage that can go up to 67 years or 81 years in case of Whole Life cover. However, most forms of savings or investment life insurance policies may be taken for shorter periods as the tenure begins at 5 years and goes up to 30 years, in some instances like whole life it may go up to 81 years.

Choose wisely

It is always beneficial to start young and plan your investments according to your financial goals. One should choose a life insurance plan based on specific needs and the finances available. It is therefore beneficial to invest in both savings/investment plans and term insurance as the former provides investment returns along with life protection while the latter ensures you secure the financial future of your dependents at a nominal premium.

(The author is the Managing Director and Chief Executive Officer, Bharti AXA Life Insurance. Views expressed are his own.)

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Source: Google | Insurance News

The post Best life insurance to buy in 2021 – Mint appeared first on NewsColony.
NewsColony



source https://newscolony.com/best-life-insurance-to-buy-in-2021-mint/

Comments

Popular posts from this blog

Volunteers book hotel room for homeless man with SingapoRediscovers vouchers

NewsColony Volunteers book hotel room for homeless man with SingapoRediscovers vouchers © The Independent Singapore Singapore — A group of volunteers from the Mummy Yummy Singapore welfare organisation donated their SingapoRediscovers Vouchers to book a hotel room for a homeless man. The man, who was identified as Jayden, did not have a place to live while waiting for the Housing Board (HDB) to allocate him a rental flat. In a Facebook post on Mummy Yummy Singapore’s page on Wednesday (Dec 16), the volunteers said: “We used our $100 Rediscover Singapore vouchers to redeem hotel stay for him and successfully booked 9 days worth of stay at 3 days per voucher.” They added that they were unable to book a longer stay because of higher hotel rates over Christmas and New Year. The volunteers hoped that they would be able to bridge Jayden’s stay until he got a flat. “Thanks our government for giving us these vouchers which in return we can put them to good use for people in need,” th...

Chinese stars moonlighting as live-streamers

NewsColony Chinese stars moonlighting as live-streamers Li JIaqi and Yang Mi joined forces to sell products online during coronavirus, blurring the boundaries between conventional celebrities and live streamers. Photo: @TrendingWeibo/Twitter The line between Chinese celebrities and live streamers continues to blur these days. Luxury brands are expanding their pool of friend-of-the-brand endorsements with top live streamers – Louis Vuitton, for example, tapped both actress Song Jia and “lipstick king” live streamer Li Jiaqi for its much anticipated 520 Chinese Valentine’s Day campaign. Celebrities, actors and singers are jumping on the bandwagon to test out their commercial values on e-commerce platforms, with Yang Mi, Li Xiaolu and Michelle Ye Xuan just a few of the screen stars moonlighting on live streaming portals including Taobao, TikTok and Red Book. So why are Chinese celebrities so eager to embrace the battlefield of live streaming e-commerce, and how are they getting on so...

90 Day Fiance: How To Watch Happily Ever After & B90 Strikes Back

NewsColony 90 Day Fiance: How To Watch Happily Ever After & B90 Strikes Back After the runaway success of 90 Day Fiancé: Before the 90 Days , TLC is blessing us with more 90 Day Fiancé spin-offs. This summer, 90 Day Fiancé: The Other Way , B90 Strikes Back , and 90 Day Fiancé: Happily Ever After? will all be on the air. Here is when to watch each of them: 90 Day Fiancé: The Other Way premiered on June 1, but there is plenty of drama still ahead. The show airs on TLC on Monday nights at 9pm EST, and the third episode is scheduled for June 15. TLC is running reruns regularly, and you can always catch up online on several streaming services . 90 Day Fiancé: The Other Way reverses the original concept of 90 Day Fiancé, where people travel from around the world to the United States to meet and marry their partners. Instead, people from the United States travel to meet and marry their partners in other countries. The season 2 cast includes season 1 fan favorites Jenny a...