3 most necessary life insurance policies

I would like to explain in details the investment and insurance options, so that I can help you in making informed decisions and you can invest in a better way and generate capital in longer term and also protect yourself from the unexpected occurrences of illnesses.

We'll review 3 most popular and most necessary life insurance policies which any individual should have in his/her insurance portfolio for a financially independent life-style.

1. Health Insurance:

First and most important is health insurance.

Hospital rooms. Doctor's Bills. Stress. Worry. Tears. Frustration.

Life seems to be over the moment one is diagnosed with a critical illness. Critical illnesses, like cancer or heart attack are extremely unpredictable and can strike anytime, anywhere.

With Health First from TATA AIG LIFE, life doesn't have to come to a standstill. Because the financial cover it offers plays a large role in contributing to your peace of mind and subsequent recovery. If you are ever diagnosed with any of the 12 Critical Illnesses, or need surgery, this special benefit provides you with a lumpsum amount.

The 12 Critical Illnesses covered are: Cancer, Stroke, Heart Attack, Chronic Renal Failure, Aorta Surgery, Heart Valve Surgery, Major Organ Transplants, Coronary Bypass Surgery, Parkinson's Disease, Paralysis, Benign Brain Tumour, Total Blindness.

Features of Health First:

1. Daily Hospitalization Benefit: Rs.250 per day for Max 90 days
2. Post Hospitalization Benefit: Rs. 125 three times within 30 days of discharge.
3. Surgical Benefit: Rs. 12,500 per unit
4. Critical Illness: Rs. 1,25,000 per unit.
5. Death Benefit: Rs. 1,000 per unit.

The Annual Premium of Health First for one unit is shown below and the total benefit of one unit is Rs. 2,50,000

Age of life assured	Male	Female
18	786	765
19	792	775
20	801	791
21	841	835
22	886	882
23	928	929
24	970	982
25	1022	1044
26	1073	1113

So, even if you go for 4 units, then you need to pay approximately just Rs. 3600 yearly, i.e. Rs. 300 per month only and you will have the coverage of Rs. 10,00,000.

For more details, please visit http://www.tata-aig-life.com/Individual/Adult/adultHealthFirst.htm

2. Unit-Linked Insurance Plans (ULIPs):

Second is an insurance with investment perspective.

If u are still young you can generate tremendous wealth if you start early.

But before I show you the real wonder, lets see what are the benefits you can have if you act right now by investing in equities:

1. Equities, even being volatile in the short term, are the best instruments for long term growth of capital.
2. Regular investment will help compounding your wealth.
3. It will help to fight Inflation.
4. It will help to plan for your financial goals.

The 2 tables below shows the effect of the inflation:

i. Effect on our Bigger Spendings:

Spendings on	Year - 1985 (Price in Rs.)	Year - 2008 (Price in Rs.)	Inflation(% per year)
Balcony Ticket	15	240	13.43%
Hotel Bill	100	1,200	11.96%
Petrol	8/litre	56/litre	9.00%
MBA Course	40,000	8,00,000	14.59%

ii. Effect on our Daily Spendings:

Product	Year - 1985 (Price in Rs.)	Year - 2008 (Price in Rs.)
Toothpaste	5	50
Masala Dosa	5	25
1 Kg of Sugar	4	22
1 Kg of Salt	2	10
1 Kg of Onions	3	18
1Litre Milk	4	24

Compared to inflation above the increment in the salary was negligible, as shown below:

Post	Year - 1985 (Salary in Rs./month)	Year - 2008 (Salary in Rs./month)	Increment(% per annum)
Accountant	5,000	24,000	7.39%
Manager	8,000	40,000	7.59%

Investing in Equity is Risky, but not investing in Equity could be Riskier...

Growth is a NEED today, and not an option.

The best ULIP in the industry at present is TATA AIG LIFE's INVEST ASSURE FLEXI...

I have an excel file where you can input the Yearly Premium to pay and Rate Of Interest you assume to get, and you will get the result for the next 40 years...

You can download the excel file from this location:

Download File

Just edit the 2 cells, with black background and red text:

1. Premium, which is 25000 by default
2. ROI, which is 20% by default.

You will not believe, but the power of compounding is great. Compound interest is the 8th wonder of the world.

Investing just Rs.25000/year, for 40 years, will give you Rs. 13,43,36,909!!!

Believe me 13 crores against an investment of just 10 lakhs.

Delays could severely affect your wealth creation goals.

Follow the simple rule below:

Start Early + Invest Regularly = Create Wealth

Start Early:

The example below shows the benefit of starting early:

	You	Your Friend
Current Age (years):	25	25
Start (age):	Today	At age 30
Invest for (years):	5	20
Amount invested per year (Rs.):	18,000	18,000
Total Invested Amount (Rs.):	90,000	3,60,000
Redemption at age (years):	60	60
Amount accumulated at 60 years, assuming 20% return (Rs.):	2,19,83,800	1,68,73,411

As you can see your friend, even after investing for 20 long years could not beat your investment of 5 years, simply because he started late. Only 5 years late. I hope you don't want to be late.

Invest Regularly:

Even small amounts invested regularly can grow substantially.

Buying MORE units @ low prices & buying FEWER units @ high prices helps AVERAGE out your purchase price.

Rs.1,500/- invested every month for 20 years = 18,000 * 20 = Rs. 3,60,000

Fund Value at 20% return per annum = Rs. 30,76,680

A whooping Rs.30 lacs, 10 times the invested amount!!! So, you might be eager to invest today, right now. Won't you?

For more details, please visit http://www.tata-aig-life.com/Individual/Adult/adultInvestAssure Flexi.htm

3. Term Life Insurance:

Third is term life insurance, which you must take if you are not going for a ULIP.

If you have lesser savings at present you can start with a term life insurance, and then when your savings increase you can go for ULIPs. Because, when something wrong happens to you (I hope it doesn't, but this is the reality of this world), all your dependents will have hard times living, as you are the bread-earner. If they receive a lumpsum amount, they could plan and live on their-self. Even if you have too much money and you have bought property (land) all across, if you don't have insurance, the value of that property will decrease drastically, once you leave this world. Because all the buyers will know that your family needs money and they need to sell the property or anything to leave their life.

By the way Term Life Insurance is the best form of life insurance and its the real insurance. Others such as ULIPs, or Money-Back Plans or Endowment plans are modified form of insurance with an investment perspective.

For term life insurance you need to go for RAKSHA from TATA AIG LIFE, as it has the lowest charges. You can compare with any other company.

This is premium table of RAKSHA for sum assured Rs. 10,00,000:

Age of life assured	Policy term 10 year	Policy term 15 year	Policy term 20 year	Policy term 25 year
18	1720	1780	1830	1900
19	1750	1780	1870	1940
20	1770	1830	1900	1980
21	1790	1850	1930	2020
22	1810	1870	1960	2060
23	1820	1900	2000	2110
24	1840	1920	2040	2150
25	1860	1960	2080	2210
26	1880	1990	2130	2270

For more details, please visit: http://www.tata-aig-life.com/Individual/Adult/adultRaksha.htm

Plus there are many more products, which can give you guaranteed returns, which can assure your retirement plans, which can plan for your children's education or marriage, which can plan for a holiday abroad, which can protect you for the life-time, which can give you monthly returns after your retirement. But those can be discussed on specific needs. We need time to discuss those things. If you have any other requirements you can always forward your query.

Why choose TATA AIG LIFE INSURANCE COMPANY:

Tata AIG Life is the one of the most trusted Life Insurance Companies in India. Since its inception in 2001, it has grown by leaps and bounds. Today, Tata AIG Life is present in 24 states and 156 cities across the country. It covers over 22 life insurance products and has over 250 product combinations. It is hardly surprising that Tata AIG Life has been voted No 1 in customer satisfaction* among life insurance companies in India.

* Source: Consumer Voice Survey 2006

Why choose ME as your LIFE INSURANCE ADVISOR:

You must have come across the frauds and false sales made by the advisors of life insurance companies, in the newspapers or might have experienced yourself too. They sell wrong products with wrong targets, and wrong promises. Do you know why? Because its their job. They get commission for that, and they are solely dependent no. of policies sold. They don't have any other source of income. So to fulfill the needs of themselves and their family, they need to sell life insurance policies anyhow. They try all the combinations and give false commitments and fly away with their commissions. This is not the case with me. I am a Software Engineer, I have my monthly salaries credited in my bank account regularly. I work as a Life Insurance Advisor, so that I never get cheated by the frauds all around us. I protect my friends, family members and relatives too. I help them to take informed decisions, and never give false targets or false promises. If I sell a policy or don't, me and my family don't have to worry about the money. So, I make trusty and true sales and build a long-term good relationship. So its on you to choose an advisor who thinks of your profits or who thinks of his/her own profits. Hope you take a smart decision.

For brochures of the life insurance products discussed above or other products you have heard off, or any queries regarding investments contact me as soon as possible.

Even if you don't buy insurances from me, feel free to discuss your requirements.

Any queries will be highly appreciated. I will feel you have learnt something from this.

For any other detail, you can have a look at the official website of the company: http://www.tata-aig-life.com/

I also want you to look once at the newly launched website of the company: http://www.assuremydreams.com/