4 Must Have Life Insurance Plans to Suit Individual Needs

The need and importance of life insurance for everyone is undeniable. A good life insurance plan is an investment as well as a security. Your life insurance plan needs to be tailored to the needs of your family. While buying a plan one needs to take into consideration the current income, loans if any, the expenses etc. of a family. Your plan will only be useful if it provides sufficient cover to your family in case of an unfortunate incident. There are a lot of life insurance companies in India that provide multiple plans. To choose one that suits your needs the best you need to look into all of the above factors.

Having a health insurance for you is significant for several reasons. An uninsured person is likely to receive lesser medical and timely care compared to those that are insured. A lack of insurance can turn out to be a financial burden on them and their family.

Along with different plans there are also a few different types. Here are the top four types of insurance that you need to know about:

1. Term Insurance: It’s the simplest type of insurance. Here, your family is assured a pre-decided amount in case of a death, if it takes place within the term of the insurance. If it doesn’t the insurer does not have to pay anyone. The lure of this type is the low premium.

2. Endowment Policy: This policy has a dual benefit. One part of the premium goes to the insurance while the other part is invested in equity or debt. At the end of the term or in case of the death of the policyholder, a lump sum is paid to the family.

3. Whole Life Insurance: This policy provides cover for the entire life of the policyholder or for a hundred years whichever is earlier. In addition to that, the policy also calculates a bonus on the amount assured, which it then pays to a nominee after the death of the policyholder.

4. Child Insurance: Child Life Insurance pays a lump sum amount to the child of the policyholder in case of his/her death. This amount is paid to the child at set intervals as planned by the policyholder. This is a good choice to secure your child’s future.

Insurance provides protection against any occurrence of uncertain events like accidental death, natural death, etc. It acts as a financial and medical support to the insured person as well as their family.