The plan which provides extra benefit of insurance cover at no extra cost.
Reason You Might Need Life Insurance?
Life insurance needs vary depending on your personal situation
If you have no dependents, you probably don't need life insurance.
If you don't generate a significant percentage of your family's income, you may or may not need life insurance.
If your salary is important to ensure the financial obligations are covered in the event of your death.
Life Insurance Costs
A healthy 30 years old could expect to pay approx Rs 5,768 a year for 20 years cover of Rs 45 Lakh for term insurance. To receive same amount of coverage for same period under moneyback/endowment insurance would cost him approx Rs 2,00,000 per year.
Term insurance are least expensive. The cost of other types of life insurance varies greatly, depending on how much you buy, the type of policy you choose, the underwriter's practices, and how much commission the company pays your agent.
The underlying costs are based on actuarial tables that project your life expectancy. High-risk individuals, such as those who smoke, are overweight, or have a dangerous occupation or hobby (for example, flying), will pay more.
Moneyback/Endowment life insurance can be expensive because huge commissions and fees limit the cash values.
Since these fees are built into the complex investment formulas, most people don't realize just how much of their money is going into their insurance agents pockets.