– Kamlesh Rao
Q. I am organizing to obtain a ULIP strategy. How considerably does one have to have to spend as charges? Also, does it assistance in generating extended-term wealth?
Ans: Broadly there are 4 categories of charges in a ULIP strategy – premium allocation charge, policy administration charge, mortality charge and fund management charge. These charges differ from solution to solution and rely on the policyholder’s age. A Unit Linked Plan is amongst one of the preferred investment possibilities for extended-term wealth creation. In addition to the investment, it also provides life insurance coverage cover along with tax-absolutely free returns.
Q. I would like to adjust the nominee in my insurance coverage policy. How can I go about it?
Ans: You can adjust the nominee of your insurance coverage policy by sending an e mail request to your insurer or on-line on the company’s web page. You can also stop by the nearest branch of your insurance coverage provider and raise the request. The method will be initiated after you submit a written request for altering the nomination along with the factors, the name and connection with the new nominee, and the identical will be performed.
Q. I am taking a housing loan and have been advisable to obtain a life insurance coverage policy. Is it mandatory? Can I show my present policies rather to the banker?
Ans: One’s personal home or house delivers immense safety to one’s loved ones. However, one will have to take note of the reality that life is uncertain, and one can by no means predict what the future beholds. An unfortunate occasion can place your family’s monetary future and life-style at stake. The property loan EMI can take a heavy toll. One need to hence fully grasp that the stakes are higher, and one need to not threat it. It is constantly advisable to opt for a life insurance coverage strategy and hyperlink it to the loan, as it will cover your property loan liability though guaranteeing that the burden does not fall on your loved ones in case of an untoward occasion. However, it is not mandatory to obtain a policy at the time of taking a housing loan. You can either obtain a new policy or can assign an current life insurance coverage policy to the bank.
Q. I am organizing to obtain a term strategy. If I opt for a Rs 60 lakh cover now, can I boost the sum assured to a crore just after a couple of years?
Ans: Life Insurance policy is a contract, and after finalized can not be changed. Therefore, you would not be capable to adjust the sum assured worth of your policy, after finalized at the time of obtain. If you really feel that you would have to have greater cover just after a couple of years, you can opt for a greater sum assured suitable now, at the time of obtain. Being younger, you will get the policy at a considerably decrease premium, which can be locked-in for the whole policy term. Alternatively, you can also opt for the growing sum assured alternative, wherein the quantity increases by 5% – 10% of the simple sum assured each and every year. This will guarantee that you are adequately insured at each and every life stage. So, ahead of getting the term strategy, evaluate your present age, monetary responsibilities, wellness situation, savings and future life objectives and then opt for the suitable sum assured.
(The spokesperson is the MD and CEO, Aditya Birla Sun Life Insurance)