Life Insurance - Life insurance is one of the most popular savings/ investment vehicles in India. Ironically its probably the least understood too. An insurance policy offers much more than just tax planning and investment returns. It offers you the ability to plan for unforseen events that could affect your family's financial problem adversely.
Evaluate your life insurance needs Life Insurance is one of the most popular savings/ investment vehicles in India. Ironically, its probably the least understood too.
An insurance policy offers much more than just tax planning and investment returns. It offers you the ability to plan for unforeseen events that could affect your family's financial profile adversely.
Factors to consider
Your financial profile and needs are different from that of your neighbour. And the same is true for your insurance needs.
However, irrespective of the differences, the number of dependents you have and their financial needs are the most important factors to consider.
Issues to consider while evaluating the above factors include:
the wealth, income and expense levels of your dependents,
their significant foreseeable expenses,
the inheritance you would leave them, and
the lifestyle you want to provide for them.
Understand the key concepts
Insurance options range from policies with low premium that offer you almost no returns to those with high premium that effectively offer post-tax returns of around 8% to 9.5% p.a.
These returns are at the lower end of fixed-income returns available today and hence are relatively unattractive.
We recommend you buy an insurance policy skewed towards investment returns only if you are in the high-tax bracket, prefer to invest in low-risk, fixed-income options and have exhausted all the other such investment options available.
As you grow older, you may not have as many dependents (your children would become self-dependent) or your wealth may reach a level where it can support your dependentsí financial needs in the event of your death.
These possibilities bring us to the interesting question on whether you should insure yourself for whole life or for a limited term. Obviously, the cost of insurance for the latter is lower.
We recommend you insure for whole life only if you never expect your wealth to reach a level where it can support the financial needs of your dependents.
Selecting a life insurance policy Selecting your Premium Paying Term (PPT)
How long do you want to pay your insurance premium for? Key factors this decision could depend upon are -
How many years you see yourself earning a regular income
The level of your regular savings
The amount you can commit to paying regularly as insurance premium
How long you want to be insured versus how long you expect to pay a premium for?
Other important questions to ask
Besides understanding how much insurance you need and selecting your premium-paying term, you need to consider some other key factors, such as -
Do you want to participate in bonus/ profit share?
What is the primary objective of your seeking insurance - mainly risk cover, mostly investment returns?
Do you want accident cover?
Max New York Life offers Whole Life Participating Policy
On death of life insured: Sum Assured plus accrued bonuses.
On Maturity (attaining age 100): Sum Assured plus accrued bonuses.
Bonus: From 3rd policy year, we will declare bonuses every year.
Option to Participate in Progressive Bonuses: Allows you to top up your premiums to purchase additional Sum Assured in your existing policy. It also generates further bonuses.
You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year.
Your claim amounts (from death, through surrenders or on maturity) are eligible for tax exemption u/s 10(10D).
LifeLong is designed to suit your individual requirements, no matter which life stage you are at, and changes as your needs change during your entire life. For the same premium, you can opt for a higher life cover (protection) and lower savings or lower life cover and higher savings. The choice of protection-savings mix is yours, and the decision can be based on your priorities and age. You can also cover your spouse under the same policy without any additional expense through a joint life policy (first death basis).
Conquering Life Critical Illness Plan from ING Vysya Life
Complete Protection Against 10 Critical Illnesses And Death
Money When You Need it Most (Critical Illness Claims Paid on Diagnosis)
Free Life Cover After a Critical Illness Claim
The plan covers
The Conquering Life Plan is a comprehensive critical illness cover that helps bear the financial burden of a critical illness. This is a unique health insurance benefit that helps you to protect yourself and your family against health and lifestyle risks.
ING LifePlus is the easiest way of taking unit linked insurance. While it allows you to invest and manage your investments at your own pace as per your risk profile, its inbuilt Enhanced Protection Cover feature ensures that your life cover keeps increasing throughout the policy term and ensures that you and your family are well protected.
As a parent, you always want to give all the good things in life to your child. See your children grow into successful individuals, fulfill their dreams at every important stage of their life and help them grab all the opportunities at the right time.
ING Vysya life helps you to achieve this. Be it for their computer training classes, dance lessons or anything that makes them experience the good things in life. No matter what happens to you, your child's future is always taken care of.