Question

Post comments regarding the type of Insurance policy that you determine is most suited for your circumstances. When might you decide it necessary to change your original selection.? If you have comments about Whole Life, Universal Life, different types of Term or Variable Life Insurances, address them with your classmates

Note: I am not looking for a definition of the different types of Insurance policies, rather why you think they are good for you at this time. Note again: I do not want definitions of different types of insurance in the discussion post. I want to know why they are most suited for you. If you are so young you don't need insurance, what and when will likely be your first purchase and why?

Answer 1

I believe endowment policy is th best fit for me because apart from covering the life of the insured it will help me save regularly over a specific period of time so that I am able to get a lump sum amount on the policy maturity in case I survives the policy term. Also,this maturity amount can be used to meet various financial needs such as funding my retirement, children's education and/or marriage or buying a house.

Thus it will fulfill the dual need for a life cover and savings under a single plan.It will also help me key in the benefits of any endowment plan include financial protection of loved ones, goal-based savings, tax benefits under section 80C and 10(10D) of the Income Tax Act and the options to obtain loan against the policy, in case of any financial emergency. It is best for me since I have a regular stream of income and need a lump sum amount after a period of time.Also, I am risk averse and do not mind settling for lesser return than taking additional risks.