I want to buy a term insurance. I checked a few websites online but can’t figure out which policy to choose. I am 29 years old and my annual salary is Rs17 lakh. I have my wife and parents as dependents. Kindly help.
—Akarsh Rastogi
While selecting the features of a term plan, you could consider the following four things. First, look to buy a cover of around Rs2 crore. This is about 10 times your annual income. Second, you should look for a term of 30-35 years. This will give you coverage till your active working life, i.e., to the age of 60-65 years. Third, consider a regular annual premium payment option as compared to one lump sum payment. The regular premium paying plan works out to be cost effective and gives you higher flexibility. Fourth, choose a plan with no maturity benefits such as return of premium. Such plans are more expensive with limited benefits.
