What do you want from your insurance policy? Life cover? Savings? Tax benefits? Or all of these? The core objective of an insurance policy is to cover the risk of death. But life insurance needs are so varied that one plan can't serve them all. What's needed is a combination of different policies. A term plan gives low-cost cover but doesn't help save. Traditional plans give low, but guaranteed, returns. Ulips help create wealth but are prone to market risks.
This is why our cover package looks at different policies and how they fit into a financial plan. Each policy works for an investor at a different stage of his life. Read our story on traditional plans and find out why they suit risk-averse investors even though the returns they guarantee can be generated from pure investment products at a fraction of the cost. Despite the high charges, Ulips are the hottest selling investment product. Now, with the regulator changing the product, insurers are already talking about selling a 'new, improved' version of Ulips. Have the changes really made Ulips worth your money?
Is insurance also a good investment? Investing in insurance firms, many of which are waiting to tap the market, may be a good idea given the low penetration and high growth prospects of insurance.
