What type of life insurance is best?

What type of life insurance is best?

Want a life insurance plan? Don’t know what’s best for you? Don’t worry!

When we talk about life insurance, there are a plethora of options available in the market. But not everyone knows about the different types of insurance plans, and that’s why Metis Marketing Services Pvt. Ltd is here to put a halt to your dilemma. But first we need you to know the types of life insurance plans in detail.

TERM INSURANCE

Features:

  • The insurance pertains to a specific period of time, say 20 or 30 years.
  • On the demise of the insured, the nominee will be provided with a death benefit.

Merits:

  • It provides you with just the right amount of risk coverage that you need.
  • It is the most affordable type of life insurance that suits your needs.

Demerits:

  • The policy is for a longer period of time.
  • If you want to extend your policy, you need to present proof of insurability.

WHOLE LIFE INSURANCE

Features:

  • This type of policy is for the entire life of the insured.
  • It is opted by parents as an investment plan for their children.

Merits:

  • It comes with an added advantage of a fixed premium, a fixed interest rate, and fixed death benefit.
  • It allows you to withdraw money and borrow against the policy amount.

Demerits:

  • This policy is relatively expensive because of the guaranteed premium and benefits.
  • The policy is has a rigid angle to it, as no changes can be made to the existing premium.

UNIVERSAL LIFE INSURANCE

Features:

  • It comes with flexible premiums and increasing death benefits.
  • The policyholder can overfund the policy by paying an additional amount and earn interest on the same.

Merits:

  • The policy is flexible in nature.
  • You can borrow against the policy premium, free of any taxes.

Demerits:

  • The policy is quite expensive.
  • The returns offered after overfunding the policy are lower than that on equity and debt instruments.

VARIABLE UNIVERSAL LIFE INSURANCE

Features:

  • Instead of earning a specific rate of interest, you can use that additional amount to invest in instruments like mutual funds. Metis Marketing Services Ltd offers you the best results on the same.
  • The minimum death benefit will be guaranteed as long as it goes along with the minimum premium.

Merits:

  • The policy is flexible as you can invest the amount into financial instruments.
  • The earnings from the additional investments will be exempted from taxes.

Demerits:

  • Investing in risky ventures can affect the health of your policy.
  • The expenses arising out of investing outside are higher.

While we have eased out things for you, you can always opt for a life insurance plan that best suits your needs and preferences. We at Metis Marketing Services Pvt. Ltd are here to help you out. So sit back and relax!

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