Low cost doesn’t mean low quality when it comes to life insurance!

This investment plan strictly challenges to whole life plans due to tax saving benefits and loan against investment with great interest rates. It also competes pension plans by insurance companies but does not have risk cover likely in whole life insurance plans.

A further study by Norwich Union found that 1 in 14 customers lied about their health and life style when applying for Life Insurance. This has prompted insurance companies to demand customers to prove their health status or risk having their policies cancelled, pay higher premiums or their claims refused. Half of some 5000 customers they wrote to have replied back and admitted to lying which could render their policies invalid.

Indians are just warming up to the idea and benefits of insurance and this hike is likely to deter a huge number of us from utilizing the benefits of insurance. The government has tried to get more individuals into the insurance fold with their “Pradhan Mantri Suraksha Bima Yojana” for accidental death and disability and the “Pradhan Mantri Jeevan Bima Yojana” for life insurance, but the cover of just Rs 2 lakh is insufficient for the common man today.

The fact is, most financial experts know nothing about the specially designed type of dividend-paying whole life policy used for the Bank On Yourself method. Out of 1,500 major life insurance companies, only a handful offer policies with all the features required to maximize the power of this concept.

Some people, especially the business minded, buy life insurance for the tax advantages the purchase provides. The death benefit of the policy is paid free of Federal Income Taxes more often than not. If the policy is part of your estate the proceeds are taxable.

“It’s important to understand not just the risk of a market decline, but the risk that your policy could lapse,” Kortz explains. “For those individuals who aren’t comfortable with this risk, it may be time to consider other options.”

A number of insurance providers combine critical illness coverage into groups, and you are able to make claims in several categories. As an illustration, one group might cover cancer-related ailments, an additional group might include heart-related illnesses and a third group might include organ transplants, renal system failure or critical burns. You can purchase a policy which covers one group of ailments or a plan which covers the 3 condition categories.