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.
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.
