•A Term Plan is the purest
form of insurance.
•It is very cheap.
•Risk cover is very high.
•While buying Traditional
Insurance or ULIP you cannot
even think of this kind of risk
cover as the premium will be
vey high.
Term Plan:
Age ---------------45
Term---------------15
Sum
Assured------25,00,000/-
Annual Premium--14,000/-
Jeevan Saral:
Age ---------------45
Term---------------15
Sum
Assured------2,50,000/-
Annual Premium--12,000/-
Jeevan Saral:
Age ---------------45
Term---------------15
Sum
Assured------25,00,000/-
Annual
Premium--12,00,000/-
We invest Rs 12,000/-
annually (because that is all
we can afford) for a small
risk cover of Rs 2,50,000/-,
which is as good as no
insurance, because we
expect returns at the end of
the term.
Once you buy a Term Plan,
you are done with your
insurance need and need-
not even think of any
Insurance Linked product.
You can invest your savings
in safe but high yield
investment options with tax
benefit.
That is exactly why you
should not buy any
endowment plan. It is a big
relief that there are no
surrender charges after 10
years, but the Guaranteed
Surrender Value is only 30%
of the total amount of
premiums paid excluding the
premiums for the first year
and all the extra premiums
and premiums for accident
benefit / term rider.
