The insurance business in India isn’t just growing, it’s 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 27 years old and want to invest in a life insurance plan. Is there a plan where I can receive regular money during the policy’s tenure?
You can invest in a money-back plan. A traditional money-back plan not only helps you plan effectively for the milestones in your life, but also assures you a certain percentage of the sum assured as cash inflow at regular intervals. The risk
cover continues for the entire term of the policy irrespective of the number of instalments already paid. If you outlive the policy, the balance sum assured is paid back to you. This may be suitable if you plan to use the funds received from the policy for your future anticipated needs.
I am a 30-year-old stay-at-home mother. First, do life insurance companies sell life insurance to housewives, and second, do I really need life insurance?
Yes, there are life insurance plans for stay-at-home mothers. The need for life insurance comes from the need to safeguard your family, if something untoward were to happen to you. Everyone wants the comfort of knowing that their loved ones are protected if the unthinkable happens. Your plan can provide for funds in times of need like children’s education, marriage, sickness, and so on. Life insurance is a wise option that may lessen the financial strain on your family.
Readers are welcome to write in with their queries to firstname.lastname@example.org. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is Rajesh Relan, managing director, MetLife.