1. As life insurance is essential during earning years, for family's protection in your absence, online term plans need to be bought before disposal of old policies.
2. All earning members should buy term insurance, covering 7-8 times individual annual income, for maximum period available, before the age of 35, as any delay would increase premiums, besides pre-existing conditions.
3. Thereafter, STOP premiums of all existing old traditional policies, and CONVERT them into PAID-UP PLANS, wherein premiums paid already will be used by insurer to continue plan's life cover every year from accumulated corpus, by deducting mortality charges, for proportionately reduced life cover over rest of policy's term.
4. In this method :-
a) your claimed tax benefits won't get reversed,
b) you won't have to pay any more costly premiums,
c) you'll get remaining accumulated amounts on maturity, and
d) you'll continue to avail life cover till maturity of policies.
5. Since premiums of new term plans will be a fraction of old premiums, you should invest "saved" amounts in a Hybrid Aggressive Balanced fund (or a Multi-cap fund) systematically, for accumulating an inflation-beating corpus during earning years, besides having adequate life cover throughout.
2. All earning members should buy term insurance, covering 7-8 times individual annual income, for maximum period available, before the age of 35, as any delay would increase premiums, besides pre-existing conditions.
3. Thereafter, STOP premiums of all existing old traditional policies, and CONVERT them into PAID-UP PLANS, wherein premiums paid already will be used by insurer to continue plan's life cover every year from accumulated corpus, by deducting mortality charges, for proportionately reduced life cover over rest of policy's term.
4. In this method :-
a) your claimed tax benefits won't get reversed,
b) you won't have to pay any more costly premiums,
c) you'll get remaining accumulated amounts on maturity, and
d) you'll continue to avail life cover till maturity of policies.
5. Since premiums of new term plans will be a fraction of old premiums, you should invest "saved" amounts in a Hybrid Aggressive Balanced fund (or a Multi-cap fund) systematically, for accumulating an inflation-beating corpus during earning years, besides having adequate life cover throughout.