Take personal term plan along with group life insurance: Pankaj Razdan
15 Feb 2019 by Daksh Gangwar
Primary objective of term insurance is to eliminate financial burdens a family might face in case of untimely death of the earning member. It is recommended to have a life insurance cover of 7-10 times of your annual income. It is also essential that you are covered until your retirement age. Therefore, evaluate your current policy provided by your employer to see if you are adequately covered. Also, a group policy provides coverage only until the time of employment; hence, it is always advisable to have an individual life insurance policy as it offers complete peace of mind while you work without worrying about your family’s future financial needs.
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Where can I expect higher returns—Ulips or mutual funds to fund higher education expenses of my son?
—Ramesh Singh
ULIPs and mutual funds are different financial instruments and cater to different financial goals of an individual. Both are linked to the performance of the stock market and suit individual risk taking appetites. First evaluate your requirements and financial needs before opting for the appropriate one. In addition to investment Ulip offers life insurance cover and tax free returns.
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Is maturity money from all life insurance policies tax free?
—Arvind Gupta
Taxability of maturity proceeds of a life insurance policy depends on capital sum assured and annual premium ratio. For policies sold pre March 31, 2012, it should be 1:5 and for policies sold thereafter, it should be 1:10 during the life time of the policy. However, this will not apply to claim on occasion of death of the insured.
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 also give a separate term plan?</strong><br />
– Daksh Gangwar</p>
<p>Primary objective of term insurance is to eliminate financial burdens a family might face in case of untimely death of the earning member. It is recommended to have a life insurance cover of 7-10 times of your annual income. It is also essential that you are covered until your retirement age. </p>
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