I am ten years away from retirement. I want life insurance for Rs 10 lakh for this period, as part of security against an outstanding loan. What is the cheapest option?
If securing the liability is the main consideration, you should go for a term insurance plan
I am ten years away from retirement. I want life insurance for Rs 10 lakh for this period, as part of security against an outstanding loan. What is the cheapest option?
Ram Madhav Nayak, Pune
If securing the liability is the main consideration, you should go for a term insurance plan. The premium for these policies is equal to the mortality premium which is quite cheap. For a sum assured of Rs 10 lakh, you may land up paying annually Rs 7,000, against which you could also claim tax benefits under Section 80C. Go in for any of the online term plans available with an annual premium payment option. This way, in case the liability ends early, you need not pay future premiums.