Life Insurance Types Explanation - Ways To Uncover One

There are more than 40 life insurance companies serving whole life insurance plans in India. All plans are designed bundling features mainly investments and risk cover. There are many reasons apart from sales strategy and brand value of insurance companies which are attracting consumers to invest in whole life plans. Here is a one to one comparison of whole life compositions to available top saving schemes in India.

This has led to customers in poor health to lie about their health status in order to get cheaper rates. According to a new research 1 in 20 people lie on their insurance application forms. A Friend’s Provident study showed that 90% of people claim to always tell the truth on insurance applications however 5% admitted to lying on application forms. Whilst a fifth of people do not read the full terms and conditions on a policy when buying insurance.

The new hike is effective this June and by the looks of it insurance providers are all set to pass on the buck to you, the policyholder. So what does this ‘trickle-down’ effect mean? To put it simply, the premium you pay for your life insurance just went up. With increasing costs everywhere one might think that this was bound to happen and a small increase in the premium might not really be a big factor, for you will still be getting a higher return when your policy matures, right. Well, not exactly, the alluring life insurance policy might actually be less beneficial now compared to other investment options like Fixed Deposits or Mutual Funds.

That’s in spite of the fact that those who invested in the S&P 500 index fund for the past decade saw their nest eggs shredded by almost 25 percent – not even counting the 29 percent inflation during this period.

The most highly paid life insurance salesmen are the ones who know the tax laws inside out. Here is how they do it. They are usually qualified Financial Planners. Some are Attorneys or Accountants. What they do is to show well off people legal ways of sheltering their income from Income Taxes. They save them a lot of money. As a result these clients think nothing of putting some of the money in a life insurance policy that they need anyway. They need to buy life insurance to protect their families. A large portion of an estate can easily go to pay estate taxes. These people buy life insurance policies sufficient to pay the taxes upon death.

First, they can “super-fund” their existing variable life insurance policies to compensate for even the most dramatic market downturns.

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