The insurance sector in India has been evolving rapidly. Life insurance penetration has witnessed a surge, from just 2.82% in 2019 to 3.2% in 2020. In addition to the rise in life insurance penetration, the range of life insurance products offered by the industry has also grown over the years. Among the many kinds of life covers available in the Indian insurance market today, ULIPs or Unit Linked Insurance Plans are one of the effective products.
Term insurance is a type of life insurance in which the life insurance company provides a predetermined amount to the beneficiary in case of an unexpected death of the policyholder. Term insurance is also known as a pure protection plan. It offers a budget-friendly plan that offers more coverage at an affordable premium. For example, a healthy, non-smoker 24-year-old male can get INR 1 crore cover for his dependents for the next 25 years. If he buys a term insurance plan, he can get term insurance of 1 Crore for less than INR 600. This shows that it is the most economical option as compared to other life insurance plans.
While some of your objectives may depend on your abilities rather than financial resources, others need the support of sufficient funds. For example, the best savings plan can help you provide for your child’s higher education or marriage expenses.
Here are a few additional reasons why its important to focus on savings scheme:
SYSTEMATIC SAVINGS
Aside from the substantial returns, one of the essential advantages of a savings plan is that it instils in a person the discipline of saving. The best saving scheme helps people to develop a habit of saving, specifically, a practice of systematic and disciplined saving.
LIQUIDTY
In the event of an emergency, regardless of the premium-payment or policy duration, you can withdraw funds totally or partially from your savings scheme after the five-year lock-in period. This may depend on the specific policy terms and conditions.
FLEXIBILITY
Everyone is unique and has their own set of goals and aspirations. As a result, while selecting the best savings scheme, you must consider the flexibility of a savings plan and select a tailored plan based on an individuals future goals and risk tolerance.
To choose one of the best saving insurance plans in India, it is advisable that you first identify your goals – both short and long-term, while keeping in mind your current liabilities, savings, and family’s financial requirements.
Here are a few things that will help you compare and choose the best saving plan for your loved ones –
The duration of your investment in a savings scheme would depend on the objective behind the investment – whether it is to fulfil long-term or short-term financial goals. Consider what you are investing for and how liquid or accessible you need your money before deciding on a short- or long-term investment.
Establishing a timeline can be useful in this process. For example, a savings scheme to fund your child’s higher education, a dream trip to another country, or simply save up for retirement.
The policy duration of your savings plan affects the premium rates of the savings scheme, depending on whether they are short-term or long-term.
Insurers will inquire about your job history when you apply for life insurance. If you work in a job that exposes you to greater risks, your savings scheme premiums may be higher since it also includes life security.
An investor chooses the best saving scheme, depending on the purpose behind the investment. This also means the premium rates for the savings scheme will be affected by it.
Insurance providers may need a medical exam and access to your medical data. Your premiums are likely to rise if you have a history of medical issues, particularly major ones like heart disease or cancer.
Saving plans offer a variety of features that can help you fulfil your goals. Here are some highlights of saving plans that you must consider before choosing the right savings plan for your family:
The policy duration of your savings plan affects the premium rates of the savings scheme, depending on whether they are short-term or long-term.
Insurers will inquire about your job history when you apply for life insurance. If you work in a job that exposes you to greater risks, your savings scheme premiums may be higher since it also includes life security.
An investor chooses the best saving scheme, depending on the purpose behind the investment. This also means the premium rates for the savings scheme will be affected by it.
Insurance providers may need a medical exam and access to your medical data. Your premiums are likely to rise if you have a history of medical issues, particularly major ones like heart disease or cancer.
Buying health insurance can be easy if you approach the right channel. Having said this, Bimafinserv.com can be a good platform for choosing the right insurance policy. Bimafinserv Insurance Broker Private Limited has made the process of comparing & buying a health insurance policy easier in comparison to earlier days. A person has easy access to complete details of almost all health insurance plans available in the Indian insurance market at a competitive price.
Bimafinserv.com helps you to compare numerous health insurance plans and zero down on the plan that best fulfills your needs. Moreover, the post-sale services are extended to the customers online as well even at the time of medical insurance claim.
