A term plan is the best way to buy life insurance, but there are other life insurance plans that bundle investments, and hard sales push make these plans quite popular. While there is enough anecdotal evidence to suggest that these bundled products are prone to misselling, what about misbuying?
Often, these plans are bought because you get a tax benefit, and unlike a term plan that returns nothing at the end of the policy, bundled plans give you a maturity corpus. So, if you die, the beneficiary gets the insurance money, and if you survive, you get the money at the end of the policy term: a win-win for all. But ask these three questions to make sure you understand your policy and take the right decision.
