Everyone tells you that insurance is an important part of your investment portfolio. They tell you that you should have policy at different stages of your life. But they probably don't tell you which insurance policy will suit you best.

This article will give you some insights about the important policies that one must have at the three main stages of his life.

Single and earning
Though one would argue why one requires any insurance at this stage in life, do keep in mind that insurance is the cheapest when you get a policy at a young age. It may seem that it would be completely unnecessary to purchase a policy now, but as someone said, you are remembered by what you have saved and not by what you have earned.

An endowment policy would suit you best. Even if it a small policy, it will ensure that you save some amount for your future. An endowment policy is best policy for you as it is leads to a forced saving and also provides you a life cover.

Married
These are the days when you realize that you have to do something to ensure your family's well being. With a wife and children, you definitely cannot afford any eventuality to play with your loved ones future.

The endowment policy that you may have taken at the earlier stage may not provide you with adequate life cover, though it is by no means insignificant. The answer to your worries would be a term policy, which is a pure life/risk cover i.e. no savings component. The main benefit of this policy would be that at a very cheap premium you could get yourself covered for a huge amount.

Nowadays with news companies entering the sector, you can attach riders to your term policy and enhance your cover further. Along with this you can also think for money back policy that would provide you with money periodically to meet some foreseen expenses. This kind of policy provides you peace of mind, knowing that you would have some cash inflow at regular intervals.

Retirement
As you near the golden days of your life, you need financial freedom and independence. A good planned insurance investment would do just that. A retirement plan that would provide you regular inflow of cash during your non-earning years, that's what the pension plan or the annuity plan would be all about.

Life insurance is no longer only a tax saving investment opportunity. As discussed above, policies are designed to meet specific objectives at every stage of your life. So before you make your next investment decision, be sure to evaluate the needs it fulfills with regards to your future requirements.

 

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