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Insurance Products

Life Insurance

Most people understand that life insurance in any form is a necessity. The policy of life insurance is an excellent method of providing protection for your family members in the event of your death. While many people understand that is important to have life insurance they may not understand that there are many different types of policies available in the world today.

FAQ: Should I purchase Term Life Insurance or Whole Life/Permanent Insurance?

This may not be an either or type question. You may want to purchase both or just one of them depending on your case. The thumb rule that term life insurance is purchased for temporary needs and permanent life insurance is purchased for lifetime permanent needs. The difference in rates between term and permanent can be significant and so it is better for you to pre-determine a fixed amount that you can afford in your budget. That will help you determine what type of policy to purchase. A nice balance of permanent and term life insurance is preferable but your budget may only allow for term life insurance. That’s okay. You can convert the term life insurance to permanent life insurance in the future. Please confirm this point when you are buying your term life insurance.

Retirement Planning

What would you do after retirement? Take a world tour with your spouse, relax at a farmhouse with your grandchildren, work with an NGO to make a difference? Most of us have some vision of our retirement life. Unfortunately, only a few of us have done the financial planning to support this vision. Today, 5 out of 6 people who are about to retire in the next ten years are not covered by any form of pension plans. With rising inflation, medical costs, break-up of joint family systems and lack of social security system, it has become increasingly important for each individual to plan for his/her retirement well in advance. There is a ‘cost of delay’ in terms of increase in initial premiums required even if the pension planning is delayed by 5 years. For example, a 35-year-old man with a target retirement fund of Rs 50 lakh, wishing to retire at 60 years, has to start investing Rs 60,408 per annum. However, if he delays this by five years and starts investing at the age of 40, he will have to pay Rs 98,463 per annum for the same accumulated amount of Rs 50 lakh (increase of 63 per cent).

To save on your insurance products, and to learn which insurance products you can buy or avoid, please contact us with your specific case. We look forward to hearing from you.

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