Insurance provides security to people’s life. Though we are aware of its importance, many are confused about the type of insurance they must opt for.
Our savings may not come to our help in some situations like an accident, death of a family member, or disability. In such situations it is possible that the money we already have will not be enough to cover the expenses. Insurance may prove to be a blessing in such circumstances.
There are many types of insurance policies that cater to different purposes. One must be wise enough to pick the right policy that matches with their personal needs.
People seeking insurance cover for their loved ones in their absence can opt for Term insurance. The coverage for risk is limited to a fixed tenure. Term insurance does not provide benefits of savings, and profit making.
Whole Life is almost similar to term insurance but with a crucial difference. It offers coverage for the whole life of the insured. Unlike term insurance, there is no limitation on the time period.
ULIP or Unit Linked Insurance Plans are aimed at providing the double benefits of life cover and wealth- making. It is suitable best for long-term needs like marriage or education of children, and retirement. The key difference compared to other insurance policies is that a choice has to be made whether the premium money should be invested in equities.