The phase of your life when you
buy life insurance highly influences the rate of your premium. Hence, it is imperative
that you get life insurance at a time which favors lowest premium.
The purpose of this article is to
suggest measures on deciding the right time to purchase life insurance.
Get insured when you’re healthy and young-
The timing of selection of life
insurance plan has a significant effect on determining the premium of a person
getting insured.
Life insurance tip- It is considered that the best
time to buy life insurance is when you are young and healthy. It’s because this
is the time when you can benefit from low premiums. In order to stay healthy, avoid
smoking and perform regular exercise. This will not only keep you healthy but also
help you get a policy with lowest insurance premium.
Further, you will learn about permanent
life insurance plans in India.
Permanent Life Insurance
Permanent life insurance plan is
different from a term insurance plan. In terms of permanent life insurance, the
insurer pays out the death benefit regardless of whether the insured dies a day
after signing the policy or 50 years later.
Permanent Life Insurance | Tax-deferred plans
The quality of permanent life
insurance plans is to grow tax-deferred after a certain period of time
appeals many buyers. It results in a significant change. The person can use the
saved money in several ways. This favors provision of additional benefits to the
policyholders as well as their families.
Permanent life insurance plans
are more expensive than the term insurance plans in India. This may be a reason
for younger people and families who have limited income to avoid such plans.
Tip- You can convert your existing term plans into permanent life insurance
plans. However, you need to ensure about this to your life insurance company. There
are certain people who want to convert to a permanent policy. However, it’s the
inability to pay higher premiums which prevents them from taking such plan. In
such a case, ask your insurance agent about the term plans with this feature.
Further, you can browse through
the various benefits of life insurance plans.
Benefits of Permanent life insurance plans-
1)
The buyer can choose from a range of options. There are 4 common types
which you can choose from-
a)
Whole permanent life insurance plan
b)
Universal permanent life insurance plan
c)
Variable permanent life insurance plan
d)
Variable-universal permanent life insurance plan
Whole life plans- It is the simplest form of permanent life insurance. It offers 2 types
of benefits- 1) Death benefit and 2) Additional benefits of savings account.
When you buy whole life policy,
you’re agreeing to pay fixed premium amount for a pre-decided death benefit
amount. Unlike term insurance plans, the whole life plans can earn yearly dividends.
This will let you earn interest when you leave them to accrue.
Universal life plans- These plans are more flexible. Also you can easily determine the death
benefit and compare it with the value of premium payments. Therefore, you will
know whether the policy is beneficial or not comparing the value of death
benefits and premiums you pay.
Variable permanent life insurance plan – These plans provides permanent
protection to the beneficiary upon the death of the policy holder. They are most
expensive type of cash-value insurance because it allows you to allocate a
portion of your premium amount to a separate account comprised of various
instruments and investment funds within the insurance company's portfolio such
stocks, bonds, equity funds, money market funds and bond funds.
Variable Universal Permanent Life insurance plan - It is a policy that combines
variable and universal life insurance. This is one of the most popular
insurance policies because it gives its policyholders the option to invest as
well as alter the insurance coverage with ease.
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