There are two things that make a potential client buy one of the many life insurance plans. These are premium and ultimate benefits. Each insurance provider bets their work on different life insurance plans that they offer to a client. Weapons are premium and have perks.
Of these two, the premium governs the majority of the market. Since this is the amount that clients pay during the life of the life insurance plan, it governs all important discussions when closing the final life insurance plan.
This can be seen from two different angles. One perspective is related to what we mentioned above, paying a premium during the life of the life insurance plan. The other perspective is that of the premium you receive after the life insurance plan matures.
The concept of Return of Premium remains relevant in a few life insurance plans, but it still has a major impact.
Life insurance plans with competitive premium rates
Now let’s review some life insurance plans that offer the most competitive premium rates to their clients.
â Annuity plan
Having a job can be tough, but quitting it is the hardest part of a person’s life. You receive paychecks throughout your tenure with the company. It takes a long time to adjust to life without a paycheck. While many public companies pay pensions to their retired employees, the same cannot be said of private companies.
You can still work as a consultant, but it wouldn’t really be the life of your dreams in retirement. Therefore, having a regular salary can help. An annuity plan is one of those life insurance plans that provides you with regular payments during your retirement. You pay a premium throughout your life. This premium contributes to your corporate fund, part of which is returned by the insurance company according to the terms of the life insurance plan.
The insurance company invests the money securely while ensuring that you don’t lose your corpus fund. You receive all of this in part after you retire.
You experience financial independence even during your retirement life. The advantage is that you can choose one of the many life insurance plans offered in this category. All of them differ based on your financial needs, allowing you to customize your premium amount based on your convenience of paying for the life insurance plan.
â Unit-linked insurance plans
Also known as ULIP, the life insurance plan works according to the market. Since these are market-linked investments, the returns you get are also market-linked; most of it is determined by the risk profile you have ranked.
The life insurance plan allows you to set the premium amount depending on the type of investment you choose. You can choose to go with equity, debt, or a combination of the two. Your choice will determine the premium for the life insurance plan. It is recommended to stay as safe as possible. This may attract a lower premium producing lower returns, but you would feel more secure in monetary terms.
You can go for a riskier investment option. This would increase your premium, but the coverage would also be higher.
You retain the right to customize the amount of your premium based on the amount you wish to invest in the option offered by this life insurance plan. It instills a sense of discipline when you realize that you need to save money for the life insurance plan. In addition, you enjoy tax benefits under Section 80C of the Income Tax Act 1961. You can also spread your investment over several instruments and benefit from the possibility of withdrawing money in case of emergency.
It is a false belief that there is no competition in the insurance industry. On the contrary, there is a lot of competition with each insurance trying to dominate the market with its best life insurance plan. These are the three life insurance plans that offer you competitive premium rates.