According to study and based on certain statics, Actually there are 7 types of Insurance Policy which one take in its life span, which are as per their needs and even changes them accordingly the need changes. But as we are limited to (HEALTH & LIFE INSURANCE) We will let you know the basic "5 Insurance Policy One Must Have" or are taken by the people, which are related to Health and Life.
|6 Stage of Financial Planning (Click Pic to view enlarge size)|
As discussed in our What is Financial Planning section where we have already explained all the decision in ones life are based on the different stage of the life he / she is. Similarly with these Stages we will have some recommendation on buying the Insurance Policy.
Below recommendation are taken into consideration for common and middle class people which will meet requirement of maximum.
1) Term Insurance : As financial guide will recommend every young person to have Term Insurance of 30 Lakh. (Figure of 30 Lakh is considered with respect to middle class people) although people must decided on the sum assurance based on your need. Term Insurance are generally available up till age of 60 to 65 maximum. But as there are no returns after policy term ends some people do not prefer it. (However we donot agree on this point of not getting Life Insurance, as these come at very nominal price these days at younger age)
2) Health Insurance: 18 is the age when child is consider as adult, but when it comes to insurance and specially HEALTH INSURANCE things are different. Different company have different different criteria, which range from (21 to 25). Considering after age 25 where an adult young now is no more part of Family Health Insurance, One must opt for proper Individual Health Insurance as soon as possible
"Above are the two types of policy which must be taken by person 'before or by' He/She enters in STAGE ONE and which changes accordingly as per the need and requirements."
2A) Family Health Insurance: As Soon as person enters a married life one should first opt of this policy by switch over to Family Floater Plan from Individual Plan and adding the Children's accordingly later on. (Remember Consider buying this policy keeping in life long renewal and many more things explained)
3) Whole Life Insurance: Many of the people do not advocate this policy or rather there is lots and lots of negativity by certain section of people, Guys, If you believe us we say there cannot be any thing better than this policy. We rate this in parallel to Term Insurance and will recommended every person to have this policy in their Insurance Portfolio. Infact we highly recommend this policy to for our most of the Male member who are the primary the bread earner of the family (WLP = Means Insurance Plan which extends after age 60 to 75 or save even 100)
4) Endowment Policy: Again it is noted that one does buy at-least one of these plan keeping the goal of the plan which is wants to achieve. (Majority of Money Back Plan, Guaranteed Money Back Plan, Retirement Insurance Plan, Joint Life Insurance Plan, Child Education Plan are nothing but, Endowment Insurance Plan). Which give Guaranteed plus extra Bonus which exist at time of maturity term and These plan are generally designed and are taken as an alternative of Saving Tax U/S 80-C
5) ULIP Policy: Majority of CHILD Plan are Unit Link Insurance Plan and are preffered by many, equally some people keep them distance from this plan as portion of investment in them is linked with market, Again these plan also have both the benefits where investment gets tax exempt U/S 80-C and Returns are also tax exempt U/S 10/10/D.
Guys, Insurance Planning is A very well calculated step in financial planning which help person to determine what should be the maximum and minimum investment he/she should make in insurance. So that person can invest properly in the pure Investment Field. which helps people to meet their financial goals
"PROPER & HEALTHY INSURANCE PLANNING IS COMPLETED BY/Before (AGE 35 /STAGE III)"
Do Consult a professional Financial Planner who can guide you with proper product which are available in the industry and will suit your need as Insurance Planning play major role in financial planning.