• Once you have made the decision to purchase insurance, selecting the appropriate plan is crucial. It is essential to comprehend the different types of insurances available and subsequently narrow down the options that align with your current life stage as well as your needs. Nevertheless, you must also consider and prepare for the future. Let us examine the types of plans accessible today.

Which Type of Plan is Best for You?

Whole Life

• This is a permanent insurance policy that offers you two funds: one for life coverage and the other for investment purposes. The premium for this type of policy is split between a fixed amount that your beneficiary will receive in the event of your death and an additional cash value that accumulates over time and is tax-exempt. You may borrow against this cash value, which is also tax-free. Typically, the premium amount remains constant for the duration of the policy.

Variable Life

• This is termed a variable plan because it consists of two distinct accounts: one for the permanent policy and the other for the investment fund, which may be allocated into bond funds, equity funds, or money market funds depending on the company’s investment strategy. Because of the unpredictable nature of the market, the cash value and death benefits are not guaranteed. This kind of insurance merges the potential for investment growth with traditional savings.

Universal Life

• This type of plan offers the same life coverage as a Whole Life Plan but includes a minor variation in the premium structure. By choosing this option, you can modify the premium amount up or down and adjust the cash protection according to your preferences, which is why it is often referred to as a flexible insurance plan. Another option is the variable-universal plan, which permits adjustments to the premium, death benefits, and investment funds during the policy duration.

• Term Insurance: This variety of policy secures the sum assured in the event of the insured’s death within the policy term. It is set for a defined period which can last up to a maximum of 30 years. There are also variations of this plan regarding the premium, such as increasing, decreasing, convertible, and level.

• You should select a life insurance plan that reflects your needs and available finances. It is advantageous to start at a younger age, as the premium rates will be significantly lower. Consider plans like Life Future Invest plans from Bharti AXA and enjoy the benefits in the later stages of life.

Disclaimer

• The article is intended to be general and informational in nature and should not be viewed as solicitation material. Please carefully review the associated product brochures for exclusions, terms and conditions, warranties, etc. , before finalizing a purchase.