Insurance Plans; Make them Flexible in 5 different ways

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Insurance Plans

Insurance Plans; Make them Flexible in 5 different ways

Though people avail of Insurance Policies for the long term, they keep the present needs in mind. All of the things like the size of the cover, premium of the policy, fund type all are based upon the current earnings, and your risk-taking ability.



All of sudden is to select the plan that gives you more flexibility that can help you to make certain modifications at the stages of life when your needs change.

Insurance Plans; Make them Flexible in 5 different waysThe following are the main features of Insurance Plans that can help one in the long run:

#1. Change the tenure and size of the cover:

When you had bought your policy, and you had a Home Loan to repay and had the liability for increasing the size of the cover. Now when you had paid that debt, you will not need that great cover.

Though decreasing the insurance tenure may take time and it can be possible when the insurer allows such modifications. Few of the insurance plans stated this plan to be very honest. On the other hand, you will have to negotiate with the insurer at a personal level.

#2. Modify the Investment Mix:

All of the ULIP plans allow people to switch funds and to move from debt to vice versa. Avail the Fund management services from the insurer that links your fund to your risk appetite and your age.

Under this plan, the investment is frequently shifted from the equities to debt keeping the age of the investor in mind.

#3. Top Up your Premium:

As you grow up in your career, you may want to increase your Investments too. The best option is to avail the Top Up option that allows you to increase your insurance premium amount in the future to support existing funds with surplus funds.

One can make lump sum at one time and thus your bonuses and extra expenses can also be used to have top up on the premium.

In case you have availed a loan against the policy that has an outstanding balance, the top-up amount will first get adjusted in paying the loan balance.

#4. Take A Break:

  • Financial crises come unnoticed. Hence an investment scheme that allows a person to take an investment holiday can provide a great amount of savings.
  • A premium holiday is a condition that allows the termination of premium payments, generally in the event of economic hardship.
  • Premiums can be paid from the collected cash during the tenure of the policy and thus the premiums do not lapse.
  • Some of the insurance companies also allow changing your frequency of paying premiums. Thus, if you are facing a crunch at that time you can change your payment mode to an annual basis and can make a lump sum payment.
  • This is valuable for people like nonsalaried who have variable income.

#5. Flexible Settlement Options:

Every person has some important events in his life like child marriage, function at home, family vacation. All of these events can be easily handled with the aid of precise planning, and a lump sum that gets received after 20 years is not a good option.

In some of the policies, partial withdrawals are available. Even they also allow the frequency of the money-back options that can be associated with the life stage events.

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