Insurance Cover: Which One Suits You The Best?


BANGALORE: Today’s generation is more worried about their health and future hence they have started thinking out of the box. With the growing awareness about the importance of life insurance cover, many individuals, especially the young executives, buy a term life insurance as soon as they start their career. Term policy is a policy with a set duration limit on the coverage period. Once the policy expires, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age or death.

Term insurance policy covers are usually very small, mostly 10 lakh or below. There are chances that these policies would certainly lead to some complications in future. For instance when the person gets married, have kids or takes a huge loan, he or she would need a larger cover. However, buying a cover at that time may be a daunting task. A point to note: policyholders get higher sum assured at an additional premium and within prescribed limits, defined as a percentage of original sum assured. Some insurers also let you reduce your sum assured by paying an additional amount. This need may be felt by someone who has taken care of his family responsibilities.