I am a 35-year-old and earn Rs 7.5 lakh per annum. My wife is also working and we have a six-year-old child. Which insurance plan would be appropriate for us? I intend to take a home loan soon, preferably with a life cover.
Arvind Beri, Jammu
In order to decide which life insurance plan is most appropriate for you, it is very important to understand your need for insurance— whether you want insurance as a protection or as a saving or both. Considering your age, your annual income and your family needs, you may go in for multiple insurance plans. As both you and your wife work, you should both take adequate term insurance plan. You could also go for childcare plans that are specially designed to work as a savings tool to meet the future education expenses of your child.
In such plans, the parent has to pay annual premiums and the lives of both the parent and the child are insured. You may opt for a unit-linked or traditional moneyback policy to meet your expenses at important stages like higher education or marriage of your child. As you will require money in parts after 5-7 years from now, you can also invest in money-back policies that make periodic payments after every five years.
