Insurance is financial product to mitigate or compensate for any financial risk. Financial risks are loss of income because of loss of life, loss of assets, loss of property, etc. Insurance products are available to take care of each and every type of financial risk.
- Term Plan – LOW premium and HIGH Life Insurance Cover
- For a 30 year person, life insurance cover of Rs 1 CRORE for 30 years is available for yearly premium of around Rs 10,000
- Takes care of loss of income because of loss of life from any reason
- Accident Plan – Takes care of loss of income because of an Accident
- Medical Plan – Takes care of medical expenses
- Critical Health Plan – Cancer Plan, Diabetes Plan, etc
- Pension Plan – Takes care of retirement and pension needs
- Saving Plan – Provides accumulation of wealth as well as life insurance cover.
- Saving Plan are EXPENSIVE for life insurance cover. For example for a 30 year person, yearly premium of Rs 10,000 will provide life insurance cover of ONLY Rs 5 lakh for 30 years compared to Rs 1 CRORE in Term Plan
- Saving Plan can be Traditional Plan ( No Equity Component ) OR Equity Linked Plan ( Have Equity Component )
- Asset Insurance Plan – Covers car, 2-Wheeler, Home, Home Articles, etc