Your life is marked with milestones - graduating, getting married, having children, buying a new car or house, and finally enjoying your retirement! While each of these events brings joy, they also give rise to added responsibilities and financial obligations.
The burden of financial expenses and liabilities might cost you your hard-earned savings and your peace of mind. This is where a life insurance plan can provide a safe and a secured financial net to help you sail through the different stages of life smoothly.
Life insurance is a contract between an individual (insured or policyholder) and an insurance company or provider (insurer), in which the insurer gives financial protection to the policyholder in exchange for monthly/quarterly/half-yearly/annual fees (known as premiums).
Investing in life insurance is one of the simplest ways to provide financial security for your loved ones and channelize your funds into a wealth creation vehicle.
However, with each phase of life, as your needs change, your life insurance needs change as well. Read on to understand what life insurance plans are available and how you can add to your life cover through the changing phases of life.
Life Insurance Plans That You Must Consider At Different Stages of Life
18-25 Years
At this age, since you are young and care-free with fewer or no financial responsibilities or health complications, you may not feel the need for life insurance or think it is too early to buy one.
However, research shows that it is a smart and cost-effective decision to buy life insurance policies at an early age. Insurance companies offer low premium rates to young proposers.
What life insurance plan will you need?
At an early age, a term insurance plan will work well for you. These pure life insurance plans carry no risk.
Your nominee receives assured payouts in case of an unfortunate event. You can also increase the coverage as your responsibilities increase in the future.
25-35 Years
At this age, after having started a job or nearly settling into one, you are most likely to welcome your life partner or even a child. You may also have to shoulder the responsibility of caring for your retired parents or siblings.
It is now that your family is almost wholly dependent on you and at such a phase, buying a life insurance plan becomes essential to ensure your family’s continued well-being.
What life insurance plan will you need?
Getting life insurance under 40 can help you build a sizable corpus to meet your increasing requirements. During this stage of life, a Unit-Linked Insurance Plan (ULIP), also known as wealth creation plans, works best. Such plans give you the dual benefit of life coverage and investment returns.
Basis the plan selected by you, the insurer invests a portion of your premium in debt and equity funds. You get a share of the profits in the form of fund units as per the premium you pay. On long-term investments, you can earn substantial returns from ULIPs.
Tata AIA Life Insurance Smart Sampoorna Raksha (UIN: 110L156V01) from Tata AIA is one such ULIP that provides you:
An assured amount that is 10 times the sum of the annual premium.
The option to choose from 11 investment avenues including equity and debt funds.
A refund of twice the premium allocation charges and mortality charges from the 10th policy year.
The flexibility to choose between a regular or limited mode of paying the premium.
35-50 Years
During this phase, your priorities include your children’s education or marriage, paying off a car or a house loan, or bearing the expenses of your parent’s healthcare, among others. Moreover, an unexpected critical illness can also pose more financial challenges.
What life insurance plan will you need?
Here too, a ULIP would serve your needs.
Tata AIA Life Insurance Fortune Pro (UIN: 110L112V04) is another ULIP that provides:
Flexibility to choose from 11 fund options.
Option to add a waiver of premium benefit that waives off future premium payments on permanent total dismemberment or death due to an accident.
The choice to receive the maturity amount as a lump sum or in periodic instalments.
50 Years and Above
At this age, you might be planning to retire and spend your golden years in leisure and financial security. You might also have to incur the costs of your spouse’s or your healthcare. Therefore, your life insurance plan will have to give you a steady flow of income for the rest of your life.
What life insurance plan will you need?
During this time, a retirement plan or a savings plan will suit your needs. Such plans safeguard your capital and provide periodic payouts to help manage your finances.
How to Determine How Much Life Insurance You Need?
To determine your life insurance needs, you should consider the following factors:
Income: Your current income and future income capacity will give you a clear idea of how much you can set aside for investing in a life insurance plan.
Expenditure: Your current expenditure can give an insight into how much you spend on different needs and how much financial backing your family will require to fulfil future living costs and life goals.
Liabilities: Your life cover should be enough to enable your family to settle liabilities like debts and loans in your absence.
Assets: Factoring your existing investments, property, savings, gold, and other tangible assets will help you decide how much extra financial support you need from your life insurance.
How to Choose The Best Life Insurance Plan?
To choose the best insurance plans, you have to follow the steps below:
First, determine approximately how much cover you need.
After that, compare different plans online to find the one offering the best advantages at premiums that suit your budget.
Next, check your insurance company’s claim settlement ratio (CSR), or the number of claims the company settles every financial year (FY). Tata AIAs Claim Settlement ratio stands at 99.06%* for the FY 2019-2020, showcasing their commitment towards their customers.
Conclusion
Your financial needs and obligations are bound to change with time. To get the support you deserve, do not hesitate to enhance your coverage with increasing insurance needs at different stages in life.
Click Here to Know More about Tata AIA Life Insurance Plans.
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Disclaimer:
This product is underwritten by Tata AIA Life Insurance Company Limited. This plan is not a guaranteed Issuance plan and it will be subject to Company’s underwriting and acceptance. Insurance cover is available under this product.
Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the Surrender Value payable may be less than the total premiums paid.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
Riders are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office. Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider (UIN: 110B028V01), Tata AIA Life Insurance Term Rider (UIN: 110B030V01) & Tata AIA Life Insurance Waiver of Premium Plus (WOPP) Rider (UIN: 110B029V01) are available under this plan.
*Individual death claim settlement for FY 2019-20 as per audited financial statements.
Tata AIA Life Insurance Company Limited is only the name of the Insurance Company & Tata AIA Life Insurance is only the name of the Unit Linked Life Insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
Unit Linked Life Insurance products are different from traditional insurance products and are subject to risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
The fund is managed by Tata AIA Life Insurance Company Ltd. (hereinafter the “Company”).
Past performance is not indicative of future performance. Returns are calculated on an absolute basis for a period of less than (or equal to) a year, with reinvestment of dividends (if any).
All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Please make your own independent decision after consulting your financial or other professional advisor.
The performance of the managed portfolios and funds is not guaranteed and the value may increase or decrease in accordance with the future experience of the managed portfolios and funds.
This document is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. This document is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this document is accurate at the date of publication; however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
Tata AIA Life Insurance Company Limited (IRDAI Regn. No.110 • CIN: U66010MH2000PLC128403). Registered & Corporate Office: 14th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai - 400013. Trade logo displayed above belongs to Tata Sons Ltd and AIA Group Ltd. and is used by Tata AIA Life Insurance Company Ltd under a license. For any information including cancellation, claims and complaints, please contact our Insurance Advisor / Intermediary or visit Tata AIA Life’s nearest branch office or call 1-860-266-9966 (local charges apply) or write to us at customercare@tataaia.com. Visit us at: www.tataaia.com
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