Whole-Life Insurance Plans
Until recently, those wishing to purchase insurance at a later phase in life had to struggle with some general problems -
limit on the age of entry, and, also the insurance policy term. Except few products,
most were deliberated with the younger population in mind. Supposing that they would require insurance cover only till
retirement, most insurance plans offer a maximum term of about 30 to 35 years.
In the last few months, though, some life and non-life insurance firms have started encouraging plans that broaden
life-long coverage or remain at least till the policy owner turns 99 or 100 years of age.
Tata-AIG Life and IDBI Federal are two companies that launched plans with enhanced maturities recently.
A health plan that provides cover for a longer period is comprehensible, as it offers relief at a time when health costs
and health concerns are rising. Though, the reason behind life insurance with larger maturities is not very obvious.
After all, isn't life insurance plan meant to substitute the policy owner's income and help his dependents financially, in
the occurrence of his or her death? That's constantly been the basic principle - if you do not have to give for those who
are monetarily dependent on you, you do not require the protection cover plan.
THE LIFE INSURERS' STANCE
Insurers say that longer-term insurance products, mainly term plans, are anticipated to meet the hither to unrecognized
requirement of those who are past their earning years. The Insurer's argument is: it's never too late to purchase life
insurance.
EVALUATE THE MERITS
The requirement for such life insurance plans depends on your conditions and what the insurance product has to offer.
Subsequently, there could be persons who need an income even after their effective working years.
Longer period term plans may assist those taking a life insurance plan very late in
life, when they are past the maximum entry age for other life insurance policies. In those types of insurance policies, the
premium, though, will be very high. This apart, you have to evaluate whether the sum assured attached to the insurance
product is adequate to meet your requirements.
Moreover, you should take into consideration the fact that the characteristics of all longer-tenure insurance plans are
not similar. A term insurance plan and a ULIP could serve different requirements.
ASCERTAIN THE REQUIREMENT
Life insurance plans with maturity periods/longer tenures are niche products intended to fulfill definite requirements of
policy owners. Therefore, they are not a must-have for every person.
Servicing an insurance plan post retirement, hence, makes little sense.
limit on the age of entry, and, also the insurance policy term. Except few products,
most were deliberated with the younger population in mind. Supposing that they would require insurance cover only till
retirement, most insurance plans offer a maximum term of about 30 to 35 years.
In the last few months, though, some life and non-life insurance firms have started encouraging plans that broaden
life-long coverage or remain at least till the policy owner turns 99 or 100 years of age.
Tata-AIG Life and IDBI Federal are two companies that launched plans with enhanced maturities recently.
A health plan that provides cover for a longer period is comprehensible, as it offers relief at a time when health costs
and health concerns are rising. Though, the reason behind life insurance with larger maturities is not very obvious.
After all, isn't life insurance plan meant to substitute the policy owner's income and help his dependents financially, in
the occurrence of his or her death? That's constantly been the basic principle - if you do not have to give for those who
are monetarily dependent on you, you do not require the protection cover plan.
THE LIFE INSURERS' STANCE
Insurers say that longer-term insurance products, mainly term plans, are anticipated to meet the hither to unrecognized
requirement of those who are past their earning years. The Insurer's argument is: it's never too late to purchase life
insurance.
EVALUATE THE MERITS
The requirement for such life insurance plans depends on your conditions and what the insurance product has to offer.
Subsequently, there could be persons who need an income even after their effective working years.
Longer period term plans may assist those taking a life insurance plan very late in
life, when they are past the maximum entry age for other life insurance policies. In those types of insurance policies, the
premium, though, will be very high. This apart, you have to evaluate whether the sum assured attached to the insurance
product is adequate to meet your requirements.
Moreover, you should take into consideration the fact that the characteristics of all longer-tenure insurance plans are
not similar. A term insurance plan and a ULIP could serve different requirements.
ASCERTAIN THE REQUIREMENT
Life insurance plans with maturity periods/longer tenures are niche products intended to fulfill definite requirements of
policy owners. Therefore, they are not a must-have for every person.
Servicing an insurance plan post retirement, hence, makes little sense.
Source...