Which is the best life insurance plan for me?
This is the most common question we get. But there is no one answer to it. Insurance policies are designed in such a way that there is something for your every need. If you want affordability, we have something for you. Same way if you want good returns on your money, we have products. so every policy we give is in accordance with the financial goals and needs of the client.
In general, there are a few variables which affect every policy. Age, term of the policy and sum assured are three main factors which will determine how much premium you have to pay for your policy. It is the tuning of these 3 main factors which will decide your premium and maturity amount.
There are some rules to these variables in insurance which are given below
Age – The higher the age of the life insured, the higher premium it will be. After a certain age, LIC does nt even accept the proposals. This limit is different with different policies. Ideally you should be getting is as early as possible to get the maximum benefit for your premiums and term of insurance.
Term of the policy – This is one of the most important factors in insurance As a simple rule, higher the term, lower the premium will be. You also get the benefit of higher bonus with higher terms. So if you can get a policy of 20 year or more it will give you maximum benefit.
Sum assured – Again higher sum assured gives you more maturity amount and more bonus. Moreover you also get a discount of 2% on your premium with policies of 5 lakhs and above.
These are the 3 main things. Try and get the maximum benefit for your money. LIC policies if used in the right way, can give you good returns at maturity, apart from a good insurance cover Its up to you how you benefit from it.
Your LIC advisor is the best person who can offer you something which is best suited to you.
You can also get in touch with us for a consultation.