The growing insurance market translates into a wide range of products suited to different requirements. If you do not know what you need, the plethora of choices can be overwhelming.
In order to pick the best insurance plan for yourself, you need to start by identifying your financial goals. Apart from this, your disposable income, no. of working years, other assets and savings also influence the choice.
Insurance plans can be broadly divided into three categories:
|Protection Plans||Growth Plan||Retirement Plans|
|What does it offer?||Protection plan such as a term insurance plan, is the most basic type of life insurance where the focus is on the core proposition of insurance i.e. protection||A Growth plan, such as Child Plan, Savings Plan allows investment along with insurance cover||A Retirement plan offers a combination of protection and savings, helping you build a corpus for your retirement years|
|Who should you buy it?||Ideal to financially safeguard your family and protect them against long-term liabilities like home loans||Ideal to safeguard your family and create wealth for specific goals and milestones||Ideal to create long term savings, that can be withdrawn like monthly pension at retirement|
|How does it works?||You pay premiums, for a fixed no. of years, and in return, the insurance company offers you a life cover for that term||You pay premiums, for a fixed no. of years, and in return, the insurance company offers you a life cover and invests a significant part of the premium in funds. The returns can be availed either on maturity or at predetermined time intervals|
|Types available||You can decide to opt for
i) Simple lumpsum payout to cover immediate liabilities
ii) Lumpsum + monthly income option to cover living expenses
iii) Or lumpsum + increasing monthly income option to cover against inflation
|You can choose from Growth plans, Savings plans, and Child plans based on your need||You can choose from Immediate annuity plans, deferred annuity plans, etc|
|Core Benefit||A large sum of life cover for a cost-effective premium||Compared to a protection plan, these offer a smaller cover for the same premium. However, the focus is also on returns|
If you are planning to purchase a Protection Plan, consider the Max Life Online Term Plan Plus for a high cover.
In addition, there are a number of Wealth Plans you could choose from, such as the Max Life Fast Track Super plan or the Max Life Guaranteed Income Plan for savings and growth.
Check out the Max Life Forever Young Pension Plan to invest towards your retirement years