Source: Financial Chronicle

The variation in term insurance policies being witnessed in the Indian market is good news for people looking to buy such polices. In recent times, there have been a larger number of such policies being offered to investors by various insurance companies, giving them options to choose according to their requirements. As the choice increases, the decision-making process also becomes difficult and, hence, here are some of the options that the individual can look at while choosing their fund. Term policy: A term policy covers only the life of an individual. There is no other benefit available in plan. This means that the dependents that are named in the policy will receive the amount of the sum assured only in case of death of the policyholder. There are no other conditions that would trigger a payout on the policy. Due to the nature of payout, the cost of premium on the policy is extremely low and, hence, there is a large cover that can be taken with a lower amount of premium.

(The writer is a CA and certified financial planner)