Usually, one holds an insurance portfolio that consists of only a term cover and a Mediclaim policy. A family takes refuge of an insurance policy mainly to finance its needs. Different persons have different needs and to satisfy these, insurance companies have come up with different plans, and continue to update on the same. It is essential to keep revising and improving insurance covers just as we re-examine our investment portfolio time to time. While buying any insurance policy, one must focus on the number of dependents as well as the amount of financial protection they are provided after the demise of insured person.
Although there are host of insurance plans suiting all age groups and purposes like children's education plan, retirement plan, life insurance, etc., one must choose the one that suits him the best, since the basic motive behind offering these plans remain the same, i.e., providing maturity benefits to the person till the end of policy term or death benefit to the dependents of the person in case of his demise.
In my viewpoint, it is better to opt for multiple policies as one can take the advantage of latest insurance products available in the market. These days, people are more inclined towards taking Unit Linked Insurance Plans (ULIPs) as these investment cum insurance plans aim at offering excellent returns. Another plan waiting to offer you the best is the term insurance plan, which works out best if you have dependents. Not only is this plan cheap, but also provide a comparitively larger cover than most insurance policies. Another category of insurance, endowment plans, are sought after those who are very skeptical towards taking risks and want assured returns, although the premiums are higher than term insurance plans. The latest scheme to hit the financial circuit is a combo of term and ULIP plans which returns back your premium but not the insured amount has recently hit the market, and is also a good option.
It is a good point to note that insurance as an instrument has undergone a drastic change in terms of its
relevance for the common man. Earlier, this was seen as just a kind of a reassurance in case things went otherwise, (life insurance, accident insurance). However, with the expansion of the investment market and the diversification of insurance plan options, the same is now also an attractive medium for savings . Hence, keeping that in mind, I sincerely believe that one should reconsider his investment portfolio as well while looking towards adding on more investment options.
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