As we have seen before, buying/ having a good insurance cover is one of the important aspects of financial planning. However, buying an insurance policy is not a simple task that you can do within minutes. You have to research well and think through your goals, priorities and other factors before buying an insurance policy. The main confusion that most people face is in deciding whether to buy a Term Insurance policy or any other insurance products.
The reason for this confusion is because most people see buying an insurance policy as a part of their investment portfolio. That is why people buy Money Back policies with the intention to grow their wealth with time. However, it should be understood that buying an insurance policy for the purpose of investment is not the right choice. So, a term policy is the key insurance plan that will give that much needed “emergency fund” immediately to the family that has lost their breadwinner. Once you have already bought a well-researched term insurance policy, and still wish to buy another insurance policy, then you can opt for Money Back plans.
This is the time when you can consider buying the New LIC Jeevan Anand policy. The main advantage of this policy is that it provides life insurance coverage until 100 years of age. Other benefits are:
- The death benefit is paid even if the insured dies after the completion of the specified policy term.
- You can add Accidental Death with payment of Rs.100/- per 1 Lakh sum assured per year and Disability Benefit Rider to this plan. Twice the sum assured will be paid in case of accidental death to the nominee.
- This plan participates in profits of LIC and is entitled to receive Bonus. It is also eligible for Final Addition bonus declared by LIC.
- There is tax benefit under section 80C for the premium paid.
- The maturity sum is tax-free as well under section 10(10)D.