I am a freelancer musician and want to buy a life insurance policy. Is it possible to change the due date of my premium in case there is less cash flow in any particular month?

—Nishita Sharma

As a freelancer musician, I understand, you may have unpredictable flow of income. So, I understand your desire for flexibility on the due date for premiums. Most life insurance products provide a choice of premium paying frequency (monthly, semi-annually and annually) to suit the cash flow patterns of customers. Also, insurers allow for a grace period of 15-30 days after the due date when the policyholders can pay the premium. Then, there are single premium products that allow you to pay a premium just once and enjoy a life cover. You can explore these options and choose the one that suits your income flow best.

One of the advantages of buying a life insurance policy is it inculcates financial discipline in paying the premium and being covered for future exigencies. I would advise you to seek guidance from a certified financial planner and set specific financial objectives for yourself. It would allow you to pursue your chosen profession with a sense of security and freedom.

I am 24 years and my education will be completed in the next two years. I can invest around Rs9,000 per annum for a life insurance policy. I have been advised to opt for a term plan or an endowment plan. The term plan would require a premium of about Rs6,000 for a sum assured of Rs40 lakh over 30 years. My father has already taken an endowment policy in my name with a sum assured of Rs5 lakh. Which product should I consider at this stage?


It’s never too early to start planning for your future, setting financial goals and taking adequate risk cover. I would advise you to take a term plan at this stage. Pure term plans are cheaper compared with other plans as there is no element of savings and the premium charged is only for the risk cover (death benefit during the term of policy). Premiums for a term plan tend to rise as one grows older so it’s prudent to buy a term plan at a younger age. You should consider the price of the term plan, the sales experience, claim settlement history and the company brand.

I am 46 years old. I have a life plan for 10 lakh. Can I opt for a term insurance plan at this age?

—Niladhra Kumar

Yes, you can opt for a term plan at this age. The maximum entry age for most term plans is around 55-60 years. The plan will be costlier for you than someone younger and you will have to go through medical tests as required. I would suggest you go for the maximum term available to you.

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