Insurance policies can be a basic necessity in your life. Every life insurance policy’s primary idea is to protect your loved ones financially from the eventualities such as death. Since you might be unable to control life’s unpredictability, you should buy insurance policies to safeguard your future financially during an unfortunate event.
Multiple life insurance products have penetrated the Indian market today, many of them available as online investments. While many of the insurance products can be pure protection plans, the rest of them can be a few of the best investment plans in India. Since there is a diverse range of products to select from, let’s go through the shortlisted six life insurance investment options in detail:
Unit Linked Insurance Plan (ULIP)
A ULIP plan is a type of investment option, which can be a dual-benefit financial product. It can provide the benefits of investment and insurance under a single integrated plan. With a ULIP plan, you can financially secure your loved ones from unfortunate events and diversify your investment portfolio based on your risk appetite. A ULIP plan is a flexible, transparent, and affordable solution for investment.
A term plan is a pure protection plan that can provide a life cover for your loved ones’ safety. It acts as a safety net that maintains the standard of living of your family in your absence. Earlier, a term plan would only offer death benefits for the members of your family’s financial well-being. Today, you can receive death benefits as well as survival benefits under term plans.
When you grow older, you are more likely to be prone to health conditions like kidney failure, cardiovascular diseases, cancer, and so forth. Since the severity of such diseases can be high, you should treat them immediately. If you have inadequate funds to cure the illnesses, you might tend to ignore the treatments. Under such a scenario, a health plan can come in handy to cover your medical and hospitalization expenses. Moreover, it can provide cashless treatment if you avail of the facilities provided by your insurer’s network hospitals.
Many of you might be under the wrong notion that your trip to an unknown destination can go as planned. However, the chances of uncertainties can be high when you set foot in an unknown land. The most common travel mishaps can be loss of baggage or passport, flight delay or cancellation, and so on. Such unexpected events can be covered under travel insurance. It can help you cover any medical or travel emergency while traveling within or outside the country.
As per the Motor Vehicles Act, 1988, having third party insurance for your vehicle is a must. Whether you own a bike or a car, you should compulsorily purchase motor insurance to secure your vehicle from road mishaps such as accidents, collisions, burglary, and so on. Although third-party motor insurance is a mandate, you should buy comprehensive motor insurance. While the third-party insurance can cover the damage of the opposite party involved in the accident, comprehensive coverage can cover your own as well as third-party damages.
An endowment plan is a combination of savings and insurance. Under an endowment policy, you can save a specific sum of money every month to build a substantial corpus in the future. When the endowment policy matures, you can receive the guaranteed payout to meet your financial requirements. If anything happens to you during the policy’s on-going tenure, your nominees can obtain the payout.
To conclude, the above-mentioned options are the top six types of insurance policies, usually chosen by people due to their benefits. Since the primary of all these investment plans is financial security, you should consider your financial goals, compare various plans, and pick a plan based on your preference.