What Kind of Life Insurance Policy is Best For Me?

No two people are the same, and no two people have the same life. Hence, when it comes to insurance everyone has different priorities and different responsibilities. Also, not everyone will face the same kind of uncertainties. While selecting insurance policies, all the parameters affecting your life must be considered.Some of you end up getting a cover that is too small for all your needs whereas the others end up opting for insurance late in their life which results in a higher premium for lower coverage. Just getting insurance is not enough, getting it at the right time and selecting the right kind of policy is equally important too. When it comes to picking the right policy, there's no one size fits all approach to determine this.The proper way to figure out is to consider the dependents and your other responsibilities and then pick the one that best suits you. Here’s a brief guide about which policies are apt for you according to specific parameters.

If you are single with no dependents and have no plans to start a family, then endowment and money back policies are the best suitors for you. These policies give you lucrative returns and will also act as a dual savings instrument for your retirement. Most people who do not have dependents go for money back policy as the policyholder gets a certain percentage of the total claim at specified intervals. This way you can not only save and earn lucrative returns but also plan your goals of high-value purchases in advance. Also Read: What is Term Insurance?

Level term life insurance gives you options to select the duration of the policy such as 10, 15, 20, 25, 30 or 35 years. This policy provides you with higher coverage at lower premiums. However, when you outlive the policy, you don’t get any claims. If you are looking for lifetime policy without worry of outliving your policy, then go for universal life insurance or lifetime insurance. These kinds of policies will levy higher premiums. Also Read: What is Life Insurance: Meaning, Benefits, Types & How Does it Work

If you have a family, but no dependents then get a policy to cover your healthcare costs. A Medicare policy is the most apt insurance for you. However, a life insurance policy that covers you against critical illnesses and disability is a must too. Add riders to your life insurance policy that secures you against unforeseen events. In case, you want to transfer some wealth after your death to your children or other family members then you might want to get an insurance that transfers the wealth to them after your death.A wrong move or incorrect selection of insurance policy will make your security against unforeseen events completely redundant. Assess all your parameters or get a consultant to get a suitable life insurance policy.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.