Life Insurance

Frankly, you can’t apply the one-size-fits-all approach to determine the amount of money that is required to lead a peaceful retired life. People have varying spending habits and their financial responsibilities at the time of their retirements are also very different. However, there is a way to determine the amount of money that an average Indian individual needs to enjoy his/her golden years with financial ease.

With life expectancy in India touching 80 – 85 years, retirement planning takes on a whole new meaning. While generations before us had to plan finances only until 70, the current generation has to plan finances for at least 20 – 25 years after retirement.

As the reader knows, typical term insurance plans are pure life plans. The pay-outs are given to the nominee on a single condition, that is, if the policyholder passes away while the policy is active. This means that if you own a term plan, claim can only be filed if you are no longer with your family.

When buying Term Insurance, include the Personal Accident and Critical Illness riders along with it, suggest the experts on the OneInsure Research Desk. Read on to know why.

People are always grappling with what is the best sum assured figure for their term plans. In this piece, you will see how it is a question of simple mathematics if you know what to calculate.

It was raining heavily that morning. Namita tried persuading Prakhar to skip work for the day and instead help her clean up the living room, which was awash with clutter from the previous night’s birthday celebration of their (now) one-year-old daughter, Ananya. But he had a very important meeting that day, on which his promotion depended. He quickly got ready, kissed his daughter goodbye, and promised Namita that he would be back half-day from work.

It is a tendency among Indians to go for maximum tenures when it comes to their term insurance plans. People want to buy term plans that will provide coverage well into their 80s! This is sheer lack of financial planning.

Unit Linked Insurance Plans (in short ULIPs) is a combination of insurance and investment. They provide life cover for the insured individual along with the option of investing in qualified investments like stocks, bonds or government securities. Here, the insured individual would be asked to pay the premiums monthly, quarterly, semi-annually or annually. A portion of it would go into securing life insurance and the remaining gets invested into different qualified investments. Investors of ULIPs can usually adjust their fund preferences all through the duration of their investment, thus giving them the advantage of flexibility.