We all have dreams and ambitions in life. When you, as a young individual or a young couple, start saving and investing your earnings, you have dreams of a happy financial life, with your investments enabling you to lead a comfortable lifestyle.

At the same time, you also ensure that you are able to provide for your children’s education/marriage expenses and eventually lead a comfortable retirement.

In short, eternal bliss! There are no thoughts of any mishaps or ill fate.

We hope so too!

But life can take unpredictable and unpleasant turns. As a prudent family head, you could also give a thought to the possibility of a premature death and its consequences on the family’s financial needs and goals.

Life insurance provides for the fulfillment of these financial goals, in the unfortunate event of the income earner’s death.

Hence, it is very important to be insured and arrive at the correct insurance amount, because you would neither want to be underinsured, nor over insured.

Types of life insurance covers

Insurers, today, offer a variety of plans that give you risk coverage as well as aid in wealth accumulation. Here is a snapshot of the types of policies and what they offer.

Term Insurance

• Most basic, cheapest and purest form of life insurance.
• If you outlive the policy, you get no money back; if you die during the policy tenure, your nominees get the amount for which you are covered.

Whole Life plans

• These policies cover you for as long as you live, irrespective of the tenure.
• The policyholder pays regular premiums until his death, following which the money is handed over to his family.

Endowment Insurance

• Provide a combination of life cover and savings.
• On maturity, you get back Sum assured and accumulated bonuses.
• Investments are predominantly in fixed income instruments and returns are modest.

Unit Linked Insurance Plans (ULIPs)

• These policies provide a combination of a life insurance cover (the ‘protection’ component) and investment (the ‘savings’ component).
• They work like mutual funds, allowing you to choose between investment options predominantly in equity, debt or a mix of both (called balanced option).
• ULIPs entail greater transparency and are flexible plans where you can select an investment fund as per your risk appetite.

Challenges faced while taking an insurance cover

Buying insurance may seem simple and straightforward enough but do you know many people face significant problems when it comes to making the right choice for an insurance policy?

Let us examine what hurdles await an average insurance customer:

• Underinsurance is a huge problem. Often you may miscalculate how much insurance you really need. Also, most of the times, people buy insurance for saving tax.
• Is the product that you have chosen really right for you? Insurance terms and conditions can be complicated to understand.
• Comparing products can be a mind-boggling exercise. It may not be always possible to compare all insurance products side by side.

Solution offered by VSK

VSK ensures that you get the maximum possible benefit from your insurance policy.

• We analyze your situation, present you with the best possible options that suit you and help you arrive at the right amount of cover.
• Our experts will help you understand exactly what the policy holds for you. We simplify what you cannot understand. Of course we are always at hand to explain if you have any questions!