I am a 49-year-old salaried woman. I want life insurance for Rs 7-8 lakh for a period of 10 years. What is the cheapest and best option?
Durga Rani, Noida
If insurance is the main consideration, you should go for a term cover. Their premium is equal to mortality premium, which is quite cheap. For a sum assured of Rs 8 lakh, the annual premium will be in the range of Rs 5,000 – Rs 6,000, depending on the insurer you select a policy from. The amount may vary depending on the insurer you choose. You will notice that if you opt to get the premiums back, the premium rate is much higher.
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In fact, insurers invest the additional premium on your behalf and return the proceeds at the end of the term. Therefore, you should invest elsewhere and go for a term policy which does not return your premiums. You also have the option to buy insurance till the age of 65 years by paying slightly higher premium.
