Ask Mint | Top-up premiums: you can invest more if you have the funds

Ask Mint | Top-up premiums: you can invest more if you have the funds
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First Published: Sun, Jun 22 2008. 11 58 PM IST
Updated: Sun, Jun 22 2008. 11 58 PM IST
The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.
I am 33 years old. I had purchased a unit-linked insurance plan from a private life insurer two years back. How can I invest my surplus funds to get better returns?
Top-up premium is a feature provided in many unit-linked insurance plans to make additional premium payments. Top-up premiums are amounts you can invest in your plan, over and above the regular premium, provided you have some surplus funds. Please read the sales brochure and policy document carefully to assess if you have the option of exercising this feature in your current plan.
I am 30 years old and want to invest in a plan which does not have high charges and is simple. Also, I am not looking at returns right now.
The simplest form of life insurance is the pure risk cover, known as term plan. The term plan works like a contract that provides a specified death benefit, but no cash build-up or investment component. Since the premium for term plans is low, a person may get adequately insured for a relatively low premium cost.
Readers are welcome to write in with their queries to askmint@livemint.com. The questions will be answered by senior executives from leading insurance firms. This week’s expert is Rajesh Relan, managing director, MetLife
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First Published: Sun, Jun 22 2008. 11 58 PM IST