How should I Invest in Life Insurance?

It may seem complicated, but as a matter of fact life insurance is actually quite structured. There are many different kinds of life insurance plans available to suit ones requirements in most ways. Each plan caters to a different needs and requirements. So you should be well aware of the plans and how they help you during the different stages of your life. You can also compare different plans to suit your requirement. Don't refrain from having a life insurancejust because you feel it’s too complicated and the cost would probably be a pinch either in your lifestyle or pocket; rather make an attempt to understand it positively and get the right kind of life insurance for yourself, coz may be by the time you think you should have had one, may be it would already be too late.

Let’s have a sneak peek at the different types of life insurance plans that you could opt for according to your age.

1. Term life insurance

Term insurance is inexpensive and a pure form of protection of life insurance. It is very advisable for young people to take a term insurance, especially if you are in your early twenties and just beginning your career, it is ideal for you. As at this stage you don't have too many familial responsibilities yet. So a smaller cover would definitely suffice with a comparatively lower income, you would be able to afford a lower premium for your term insurance plan too.

Gradually as grow and achieve great success during your career your income also increases. You can then renew the plan or increase the cover to suit your needs.

2. Pension plans

The 40s is the decade when you need to seriously start planning out your retirement. You also have many other things and responsibilities you probably need to take care of, so you need to look out for an insurance plan that would cover all or probably most of these aspects. A pension plan fits in very well here.

A pension plan is a kind of insurance where you pay a premium to build up a structure for your retirement. This policy matures at the time of your retirement. The fund that builds up over time is then disbursed, either in a lump sum amount or in instalments. In case you choose to get thee funds in installments, the fund can replace or partially replace your monthly income and you can continue to live life the way you wish to. So if anything does happen to you before the plan matures, your nominees get a sum assured and also the money you invested back which would be like a saviour.

3. Endowment life insurance

By the time you are in your mid 30’s, you have a much steady income and you are probably well established in your career too. At this point of time your responsibilities tend to increase, probably your lifestyle may also change. In all probability, you are married by then too. So you have added responsibilities and may be the number of dependents has increased too.

You may have started to invest in different things. At such a point, an endowment life insurance policy is well suited and may be the best to opt for. You can buy a traditional life plan, a ULIP or a money back plan to look up to your different needs. These plans not only provide a platform to insure but as well as to invest. They also help ensure that the financial future of your family members is secured, by promising to pay a death benefit if you die due to any unwarranted circumstances.

4. Health is wealth

The main purpose of buying life insurance is to stay protected at all times against any eventuality. As we all are aware, health matters if ignored in any way, can lead to death on unpredictable circumstances. Bottom-line, never ignore your health and always buy adequate insurance to cover your health.

There are many life insurance plans that offer health benefits too. You can opt for the critical illness benefit in an endowment plan. You can also opt for a disability rider on a term plan. These additional covers protect your health too and help you get the maximum out of your life insurance plan. Health issues can strike at any time without any certainty. Therefore it is of equal importance to have a health cover into consideration when buying life insurance.

Conclusion

Life insurance plays a very important part in today’s day. However, you can get the best of an insurance plan only when you choose it correctly and as per your needs. Requirements change as you grow older and older. Your insurance cover should also be up to date and change accordingly. So keeping in mind all of the above mentioned in this article, Compare and opt for an age-appropriate life insurance plan to stay protected in a wholesome manner.