What are the key factors that young investors should look into while choosing between products and insurers?
While buying insurance, one needs to analyse one’s own needs and look at which products would suit the individual the most. There are a host of insurance products which can be classified into four broad categories, based on risk bearing capacity and basic cover required: Unit Linked products are meant for customers who have a higher ability to bear risk on their investments, apart from making use of ULIP as a product to cover risk. Endowment and money-back plans are focussed on creating a savings pool with added risk cover. Term plans are simple low-cost options without a savings element. They are excellent for self-protection and safeguarding your family’s interests. Pension plans are annuity plans aiming at creating retirement benefits, which will take care of old age needs. Apart from these broad categories, we also recommend health insurance products to safeguard against expenses due to medical treatment. ULIPs are often to their disadvantage compared to mutual fund products becaus
