Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

How to choose a life insurance policy for you?

By Chris Luke Subscribe to RSS | March 30th 2012 | Views:

Insurance in India is divided into four types: Life, Fire, Marine and Miscellaneous. Life insurance is the biggest seller among these and amounts for the most number of policies sold.

There are two main ways you can buy a life insurance policy in India. The traditional way is to contact an insurance agent who will come home and try and sell you a policy. The new method is to go online, research various policies and then buy the policy online, where it`s offered at a significant discount to its offline variant. The policy will be the same but the lower costs associated with online mode of transaction ensure that you could buy the same policy for a lower amount.

Almost all insurance companies in India offer their policy online. There are also a huge number of websites that explain the benefits of various policies in explicit detail. These websites also offer comparisons between various policies. Another feature that’s available online is a premium calculator that helps you decide how much insurance cover you need to buy. Once this is settled, you need to look at what kind of policy you want to buy.

Term Insurance: Term insurance is for a specific period, and has the lowest possible premium. It offers coverage up to 35 years. Premiums are fixed and do not increase during your term period. In case of an untimely death, your dependents will receive the benefit amount specified in the agreement. You can customize a Term insurance with the addition of riders.

Endowment Insurance: This is ideal if you have a short career path, and hope to enjoy the benefits of the plan in your life time. These plans are useful when you retire as they can generate a monthly pension for the rest of your life.

Whole Life policies: These policies have no fixed end date for the policy; only the death benefit exists and is paid to the named beneficiary. The policy holder is not entitled to any money during his or her own lifetime, i.e., there is no survival benefit. Primary advantages of Whole Life Policies are guaranteed death benefits, guaranteed cash values, and fixed and known annual premiums.

Money-Back Plans: These are ideal for those who are looking for a product that provides both - insurance cover and savings. The payout is exempt from taxes except under specific situations.

Unit-linked Insurance Plans: These are popular, as they deliver the benefits of an insurance policy with returns of a mutual fund. Part of the premium is invested in equities and the remainder is used for insurance and fund management expenses.

Pension Plans: These are of two types - Endowment and unit linked. Endowment plans invest in fixed income products, so the rates of return are very low. ULIP Plans offer higher returns but have higher risk.

The benefits of a life insurance policy are that they ensure the financial security of your family in case of any uncertainty. Rather than depending on a broker or insurance agent, get online compare policies, read feedback and then make up your mind about the policy you want to buy.

Chris Luke - About Author:
Chris holds a strong professional background with the life insurance sector in India. Travelled across the world and had the prestigious opportunities of meeting top insurance companies in the world, Chris now shares his experience through writing across different websites. He personally feels that every individual in India should opt for a good life insurance policy or ULIP Plans and for this recommends AEGON Religare Life Insurance to his viewers. For more information about them, visit website

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Insurance Articles Subscribe to RSS

Various plans are available at affordable cost
Published by William Richards on June 2nd 2012 | Insurance
Medicare insurance supplemental rates differ in accordance to the type of plans and the age attained...
Medicare supplement plans that offers the best help for better coverage
Published by William Richards on January 3rd 2012 | Insurance
Making the best choice of the Medicare supplement plans in order to get the best benefits for yourse...
Life Insurance plans can protect everybody!
Published by Max York on May 25th 2012 | Insurance
Life may bring about several challenges that may test you on so many different levels. But just as e...
Treatment plans goes best with Medigap
Published by William Richards on June 2nd 2012 | Insurance
Medigap insurance replaces the Original Medicare insurances which fulfills all the desires of the cl...
Compare and choose your treatment plans
Published by William Richards on June 2nd 2012 | Insurance
Supplemental insurance could be differentiated by reputation, reliability. They also depends upon wh...
Today Group Health Insurance plans has become more cheaper then past
Published by Morgan001 on March 23rd 2012 | Insurance
The Group health insurance is basically the insurance offered to a group of members at a less rate t...
Risk Free Investment for Small and Large Investment plans
Published by Tyler on February 18th 2012 | Finance
Most of us know that investment is a precaution which keeps us secure about our future. Most people ...
Life Insurance plans ideal for financially Independent Retirement
Published by Max York on May 14th 2012 | Insurance
Post retirement brings along a tough phase for many in life as there isn’t any steady income flow....
Medicare supplement plans the best help in better medical coverage
Published by William Richards on December 30th 2011 | Insurance
Get the best benefit of the Medicare supplement plans in order to get the best benefits in relation ...
UK pension plans going wrong due to wrong choices
Published by Sandra Jeux on February 23rd 2012 | Finance
In a report by Pensions Policy Institute, it was revealed that the decision of a person about his pe...
Include product liability insurance in investment plans
Published by Andrew Edwards on December 13th 2011 | Insurance
Product liability arrives at head when consumer or workers take off injury with the product...
Beneficial plans for corporate world
Published by David on July 11th 2012 | Insurance
Find here detailed info about Life Insurance, health insurance, Long Term Disability, wellness progr...
The Medigap plans that offers the best benefits in addition to your Medicare plans
Published by William Richards on January 3rd 2012 | Insurance
Make the best choice of the Medicare supplement plans in order to get the best benefits for yourself...
Take care with supplemental plans
Published by William Richards on June 2nd 2012 | Insurance
The supplemental Medicare plans are to be chosen in accordance to the financial status of the candid...
Relax and enjoy in treatment plans
Published by William Richards on June 2nd 2012 | Insurance
It is very important to acquire the supplemental plans of Medicare as they will help to help to get ...
Dental insurance plans
Published by Lessardcasey on January 13th 2012 | Insurance
Most people have experienced the unpleasant feeling of a cavity or other nagging tooth problems. How...
Business insurance plans for online business
Published by Andrew Edwards on May 10th 2012 | Insurance
While starting new online business consider business insurance as the prime requirement of your comp...
Willing to earn after retirement? Invest in best retirement plans
Published by Chris Luke on January 19th 2012 | Insurance
As living a peaceful life even in future is the need of today, people are investing a lot in to reti...
Individual dental insurance plans
Published by Lessardcasey on February 11th 2012 | Insurance
Everyone at some point has been to the dentist throughout his or her life. Most of america can relat...
Medicare supplement plans the choice of better coverage for original medicare
Published by William Richards on December 30th 2011 | Insurance
Make the choice of the best Medicare supplement insurance plans in order to get the best benefits fo...