Are term plans the best when it comes to insurance?

Previously people think insurance as an investment where they get tax benefit and money security. But due to modernization and development there are several more instruments for money security and tax benefit, so now young generation like us opt for term insurance as the premium is very less and the benefits are more. So one should opt for term insurance.

yes

Term Insurance is full cover with a lower premium. Few private players has term plan with return of premium , in that case premium will be higher. In LIC term plan , there is no rider is avilable. They can cover maximum of 35 years or 70 years of age which ever is higher. But Pvt players covering max 25 years , few companies cover 30 years with rider benefits.. If a customer is looking a pure risk cover he/she should go for term cover only. He/she can invest in mutual funds for investment purpose. ULIPs are very expensive , Premium comparison among top private life insurance companies with LIC:( Premium is very competitive.)

1. HDFC Standard life

2.ICICI Pru

3.Kotak

4.Birlasunlife

5.SBi

6.LIC

Insurance is the basic need & Term Insurance fulfils it. Because you get insured for your life value in such a small premium in which even your vehical can't be insured for the same value.But it never means that you should only have Term Insurance. You should have a term Insurance alongwith a longterm plan of LIC -Endoment Plan. Because Term Insurance can be terminated at any point of time without any money back from LIC & Endoment plan can inculcate a Compulsory Saving Habit alongwith agood sum of money et the end of the plan. So you should have the best of both the worlds

Look if you want only the insurance cover in the true sense than term insurance is the best solution. Because it is insurance in the real meaning of the word. If you want I can suggest you a few plans. In term insurace the sum insured will be quiet big where as the premium will very less. But if want return on the money you invest in insurance than term insurance are not the right choice.

One should first clear the need of Term Plan and Insurance policy in his personal life.The need will decide the nature and the tenure of Term Plan/insurance.

Nowadays companies offer plans, which give free life cover for certain period of time covering certain amount i.e. they offer equity investment along with insurance cover. The return which such private firms project on equity investment ranges between 9 to 30% (no risk cover for this investment!!) plus they give you insurance cover. These kind of plans cover the insurance as well as they offer good investment option also. Some companies offer flexi plan in which one can shift to some other plan which the same company offers with same premium amount. The final call has to be taken by the person insuring his family. As far as insurance premium goes, it is related to the customer base attached to a particaular company. A private company having low customer base will have higher premium.(it may not be the case with PSU insurance companies or MNCs in their initial stages). 

Also, the person going in for insurance would prefer hassle free kind of insurance company. The Indian PSU insurance companies have strong roots and they are the most reliable as far as business cycle and clearnace of claims are concerned. So, LIC is the best option when it comes to insurance or term plan. 

Insurance policy is best if taken for TERM. Coupling it with unit link plan reduces the cover & the charges are much more as the company undertakes more risk in playing the market.

Yes, I agree with you Mr.Mohan Reddy term plan is battter when it comes to insurance because it gives more risk benefits and profits. Term plan always gives batter returns than short term plans and as you say these money should be invest in mutual funds and stocks so, its obvious that it gets more benefits from that.

I am sure yes, because term plan are just small investment at every selected period get converted in big risk control and savings as well.  And not to forget that this is a good savings account as well.....

In term plan you have to pay less amount compare to other insurance policy. it is purly a insurance policy.we are paying around appx Rs.1000/- per 100000 of car/bike  for GENRAL INSURANCE ,which is  not returnable basis.we are paying for non living thing and that to COMPULSORY and why not term plan.in the tem plan you have to pay in between approx. 10-20 RS/DAY FOR 10-20 lakhs,depending on your age.so it ie best option to go for.I will star t a new debate that it should be compulsory for all pepole.so i strongly support for term plan

Niranjan, you have started a good debate!!! The primary purpose of Life Insurance is to cover the risk of death, and in the very certain present day world, I think it is the basic necessity for every individual. That too, with the end of combined family system and with incresing nuclear families, pure insurance cover is the basic necessity. This way Term plan is the first one to start with before thinking of any other insurance products. What to do for multiplying our money when we are alive, ther are lots of options....

Coming to the choice of the Insurer, I definitely think private insurers offer better term policies. I am not sure, but I understand Kotak has ot cheaper term Insurance.

For some, "buy term and invest the difference" may be a legitimate option. While for others, permanent insurance is the way to go. Your decision is a personal one, based on your family's means, needs, and goals. The insurance and financial decisions you make now are crucial to your family's future. Before leaping into the unknown, do your homework. Read up on the benefits of all of the types of life insurance and financial products you are considering.

Going for term plans are the best option because, under that, we get more risk coverage and less premium. The LIC term plan or other private players, offering less premium and giving different riders ,LIC is having limited option and the premium is more for their Term plans. In case of opting for insurance policy of a huge amount for a long time, one needs to pay a specific amount of premium . The difference between insurance premium and term policy premium amount invest in mutual funds or in stocks. In this way one can get maximum benefit.

Whatever knowledge I am having in insurance tells me that term plans are the best to go for, but the main question is which term plan whether to go for, is it the good old LIC term plan or other private players which offer very less premium amount and give different riders as an option, whereas I hear LIC is having limited option and the premium is more for their Term plans. Please suggest are term plans the best, if it is then which one to opt for.....Thanks in advance