Planning to Buy Life Insurance? First, Assess the Type of Insurance You Need

Jul 06, 2018 | 1 year ago | Read Time: 3 minutes | By iKnowledge Team

Currently, there are many insurance providers or insurance companies who regularly come up with different types of insurance plans. Thanks to the government’s policy to insure the uninsured, there has been a considerable increase in the penetration of insurance applications in the country. As per an analysis shared by the India Brand Equity Foundation, in the year 2015-16, the number of lives insured by health insurance was 36 crores. This was estimated to be close to 30 percent of India’s population. In the past two years, the number of people insured each year has increased considerably. Around 28.80 crores in 2016-17 and about the same number in 2017-18.

Around five Government-owned insurance companies have been public listed by the Union Cabinet.
At the same time, the Government’s stake has decreased to 75 percent from 100 percent in Government-owned general insurance companies. This most certainly has brought in a greater amount of accountability and transparency in the formal processes.  
Evaluating and selecting an insurance plan takes time and as an insurance buyer it is necessary that you do thorough research of the various insurance policies offered by different insurance providers.

Before you decide on buying one, here’s a list of the types of insurance policies available in the market and what you should know about them:

1. Term Insurance Plan  

A term insurance plan requires the insured to pay a small premium amount for a specified period. The sum assured  is paid to the nominee as a death benefit if the insured passes away, as one single amount or as monthly payments. Aegon Life’s term insurance plan such as iTerm Plus provides financial support to your family in your absence.

2. Savings Plan

A savings plan basically channelizes your efforts to save money to purchase a home, a car, plan your marriage or any other long-term financial goal that may be important for you. The interest rate is typically between 8-9%.

3. Unit Linked Insurance Plan (ULIPs)

A Unit Linked Insurance Plan is a slight variation from an ordinary life insurance plan. A ULIP offers you dual benefit in the form of a life insurance and investment options. A part of the premium you pay towards ULIPs is invested in stocks, bonds and mutual funds and a part of it is considered as premium towards life insurance.

4. Health Insurance Plan

Unexpected or sudden medical emergencies are bound to happen and cannot be avoided. Also, medical costs are rising day by day. The increase in costs is quite steep. Therefore it is important to buy a health insurance plan and a health care policy in time. A health insurance bank  typically reimburses you and your family for medical costs incurred because of hospitalization and critical illnesses.

5. Retirement Plans

A retirement plan offers financial security for your post retirement days. This means, a retirement plan becomes the source of your income once you stop working. It is crucial for you to start evaluating the various retirement plans available to you and apply for one. Do note that the retirement age of a working individual in India falls anywhere between 60 to 65 years. Hence, it is necessary that you start working on your retirement plan at the earliest, while you are young.

6. Child Insurance Plans

Securing the child’s future is of utmost importance for every parent. A child insurance plan such as iMaximize by Aegon Life guarantees the child’s safety, in absence of its parents too. As the name suggests, a child insurance plan provides coverage to the minor which is a child of young parents in this case.  

7. Group Insurance Plans 

Healthcare coverage to a group of people is the basis of a group insurance plan. These plans are usually cost effective and offer the same number of benefits like a regular insurance policy.

To conclude

Make sure you are applying for a life insurance plan considering your financial goals, and understanding whether these goals can still be met by your family in your absence. Plus, it’s easy to buy a life insurance online today after assessing your needs, and financial goals. With Aegon Life, you can gift your loved ones’ financial happiness, and keep them one step ahead in life.

Advt. no.: IA/Jun 2018/4114

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