Many Facets Of Life Insurance

policy may do much better than any traditional plan. If the market is down, the returns may be lower.

It is a better option for those who can afford to take the market linked risks. Here the insured have the option to choose the type of funds they wish to invest in based on their risk profiles. These ULIPs are more flexible and transparent.

Pension PlansPension plans also called retirement plans or annuities are somewhat contrary to insurance yet included in insurance plans. They do not cover the life of the insured in case of untimely death but ensure income if one outlives the earning age. The annuity can be immediate or deferred depending upon the stage at which the plan is taken. In a deferred annuity plan, a fixed premium is to be paid to the insurance company during the decided accumulation phase. On vesting up to a 1/3rd of the accumulated amount can be withdrawn and the rest (or even whole of the amount) is used to purchase annuity. Immediate annuity allows to purchase immediate annuities with a lump sum amount that can start paying regular pension immediately.

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One must keep in mind the purpose of buying a life insurance plan or any plan. Make sure that you use the free look period to read through the policy document and see if it fulfills your purpose of buying a particular plan.

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