Planning to buy life insurance? Here are some good
picks for 2018
If
you are looking for an insurance product completely from the protection point
of view a term plan is the best suited option.
Choosing an insurance product can be a difficult task. Manik Nangia- Director Marketing and Chief Digital Officer, Max Life Insurance told Moneycontrol that the first thing to do before buying an insurance plan is to calculate your human life value. It will let you know how much protection you will need. Also, add your income for the remaining working life including loans etc. “Check if the plan allows you to add riders to the accident and critical illness. Also, check if there is an option to receive the sum assured in a lump sum or in the form of an income stream. Finally, check the claims paid ratio of the insurer,” he said.
If you are looking for an insurance product completely from the protection point of view, i.e., who wish to create a cover against the risk of death, taking a term plan is a best-suited option.
Santosh Agarwal- Head of Life Insurance, Policybazaar.com said low premiums, assured death benefit in case of demise and tax savings on premium render term plans as the most affordable and simple products that customers must buy to shield their nominees in case of an untimely demise. “Term Plans are best suited to safeguard your loved ones so that financial burden does not pass on to them, in case of any mishap,” Agarwal said.
Agarwal picked the following term plans for 2018:
|
Insurance Company
|
Plan Name
|
Maximum Coverage Available
|
Maximum Policy Term
|
Annual Premium (Inclusive of
GST in Rs)
|
|
|
HDFC Life
|
Click2Protect 3D Plus- Life Option
|
75 Years
|
40 Years
|
12478
|
|
|
ICICI Prudential
|
iProtect Smart
|
75 Years
|
40 Years
|
13860
|
|
|
Max Life
|
Online Term Plan Plus
|
75 Years
|
40 Years
|
10148
|
|
|
PNB Met Life
|
Mera Term Plan
|
99 Years
|
81 Years
|
10146
|
ULIPs as an Investment Tool
If you are looking at insurance as an investment, you should consider buying a ULIP to create long-term wealth. ULIPs invest a portion in equities and give superior returns compared to many instruments when markets do well. If you have any long-term financial goal such as child education, marriage or your retirement planning, then new age ULIPs are a perfect financial tool to fulfil it. From being hailed as expensive products, ULIPs have come a long way.
Agarwal said that the low-cost ULIPs are inexpensive when compared with other investment tools. One can avail, maximum returns at a minimal cost if invested for a longer term. Basis past year performance, equity-linked ULIPs are expected to generate 12-15% of returns, if invested for at least 10 years or more. Moreover, there is a flexibility in ULIPs, a person can invest either in equity, debt or mix funds depending on his/her risk appetite.
“The new age ULIPs also come with benefits like loyalty bonus, additional units, zero policy administration and zero fund management charges, making it more attractive and better option for customers,” he said.
Agarwal’s ULIP pick for are:
|
Insurance Company
|
Plan Name
|
Best Fund Performance
|
Past Fund Performance Data
|
||
|
1 Year
|
3 Year
|
5 Year
|
|||
|
Bajaj Allianz
|
Future Gain
|
Accelerator Mid-Cap Fund
|
45.4%
|
22.6%
|
23%
|
|
HDFC Life
|
Click2Invest
|
Opportunities Fund
|
39%
|
19.6%
|
19.6%
|
|
Edelweiss Tokio
|
Wealth Plus
|
Equity Top 250 Fund
|
35.6%
|
14.5%
|
19.1%
|
|
SBI Life Insurance
|
eWealth Insurance
|
Equity Fund
|
30.8%
|
11.8%
|
15.3%
|
(Assuming a non-smoker male, aged 30
years, living in a metropolitan city looking to buy a ULIP)
Happy Investing
Source:Moneycontrol.com
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