I am 32 years old and draw an annual salary of about Rs 3 lakh. Which insurance plan should I go for?
The primary reason for taking a life insurance policy is to cover the risk of life and protect the family from the loss of losing a breadwinner. To start with, you may go for a term plan to get high life insurance cover at a reasonable premium and cover the risk of life. To top it up, you can add some riders such as accidental assurance. Critical illness and long-term disability insurance may be clubbed with an insurance policy to cover the respective eventualities. Numerous other products such as money-back, endowment plans and unit-linked insurance plans (Ulips) can be chosen, depending on the availability of surplus to invest. If you can invest, you may go for a pension plan at this stage because your retirement is still about 25 years away. So, even a small regular contribution at this stage will fetch you a decent pension.
