As you grow up and start a family of your own, you begin to understand the importance of planning for the future. The members of your family are dependent on you to provide for them in the long-run. Thus, you must take every possible scenario into consideration in your bid to give them the best of the best.
With this in mind, it is important to make a plan so that your family is well off, in case something was to happen to you. The best way to do this is to take up a life insurance policy. Basically, this involves paying a monthly premium in exchange for coverage, in case of the worst. This means that is something was to happen to you, the insurance company will pay the sum assured to the person named as the nominee. This will go a long way to help maintain financial stability, in spite of being faced with a grave situation.
This being said, there are a number of options for you to choose from and you must consider the pros and cons of each before making a decision. Let us take a closer look at two popular options.
The ULIP plan sees a combination of both investment and insurance. A part of the premium paid, will go towards providing life insurance cover, while the other part of the fund is invested into stocks or bonds, which you can manage yourself. Thus, a ULIP provides you both savings and protection in the long-term.
Another option is a term insurance plan, where life coverage will be paid for a fixed period of time, in exchange for regular payments of premiums. This is a more affordable option in comparison to a whole life insurance plan and they are valid for a period ranging from 5 to 30 years. If anything was to happen to you during this period, the insurance company will offer compensation to the nominees.
Before selecting any one of these options, it is important to consider the benefits of each. You must look at your situation and decide which offer will suit you best. The goal must be to leave a significant amount of money behind, so that you family can continue living comfortably. With this in mind, you should make a decision, keeping their wellbeing in mind.