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02 Dec - 10:00 hrs

Anil Rego | Founder & CEO, Right Horizons


How to decide which insurance scheme one should go for

Chat Transcript

guest: I am 26 years old and i earn 1 lakh per month what is the best insurance product which i can opt for?
Anil Rego: Insurance plan depends on your need. Look at a term plan which would take care of your risk. However you will not receive any lumpsum back at the end of the term.
guest: Which one is a better option to buy endowment plan or money back or Ulip?
Anil Rego: Insurance depends on user need, there is no better or worse policy. In case of ULIPS it is a market connected scheme and would largely benefit if you are looking at a long term period i.e greater than 5 to 8 years. Endowment plans and Money back plans are traditional plans which invest in government bonds. They yield a low return but also have low risk. In an endowment plan however, money is returned only at the end of the term. Where as in case of money back you get periodic returns. Therefore if you are conservative then endowment plan or money back plan is a good option. If you are a risk taker ULIPS would be better.
guest: What is the best kind of insurance planning that one can do?
Anil Rego: Insurance planning depends upon your needs. If it is purely to cover risk then a term plan would be the best option. If you wish to invest for any other long term needs ULIPs would be a better option. If you are a goal oriented investor, E.g Child education. a product such as money back or traditional plan would be a better option
guest: Sir I am investing rs 12000 py in hdfc young star ulip plan & rs 16000 py in hdfc Pension ulip plan since 2010 plz suggest me to continue in these plans
Anil Rego: These are good plans available currently. I would suggest you to continue with them.
guest: Does Rule of 72 apply in insurance?
Anil Rego: Rule of 72 does not apply to Insurance
guest: Hi Anil. My parents are aged 71 and 61 years respectively. They are covered under my company Group mediclaim for 5 lakhs. I am looking out for a health insurance plan for them which would cover them till age 90. They do not have any major illnesses yet. Which plan would you recommend ?
Anil Rego: The plans called `Oriental Insurance Hope` and `National Insurance Varistha Mediclaim` would be good options to cover your parent`s medical needs. These plans are meant exclusively for senior citizens and cover them till the age of 90.
guest: give me lic Best paln
Anil Rego: LIC has many good plans. It would depend on your personal needs, time horizon of investment and risk cover you opt for to decide which one would suit you the best.
guest: Is NPS Considered as a insurance product for retirement though it does not sell any plans?
Anil Rego: NPS is a pension plan and not an insurance plan, it takes care of all your pension needs.