Select Ulip Based On Returns, Size Of Fund

Queries Arif Khan, Patna I don’t have a life insurance policy, as I don’t have anyone completely dependent on me. However, I’m considering buying one. How do I determine the right coverage amount, and what factors should I consider when choosing a life insurance policy? One buys life insurance for four reasons: death benefits for your nominees, investment, savings, and tax benefits. The death benefit is the most important. Consider life insurance if you are likely to have dependents, such as parents, a spouse or children. The sum assured should be 10 times your annual income. While selecting term insurance, you should look at the insurer’s premium, death claims settlement rate and solvency margin, a measure of financial strength. If you focus on long-term investment returns or savings, you may consider unit-linked investment plans (Ulips). However, evaluate this...