Every policyholder should review his plan's features on a regular basis so that it is coherent with the current needs. The amount of life insurance that you need depends on various factors such as marital status, earning power of the person, age in the family. The requirement of having an insurance plan changes every few years due to increment in responsibilities.

So, you should keep these points in mind while deciding Insurance cover:

1. Immediate financial expenses that your family may require upon your immediate death.

2. Your salary that goes towards meeting present expenses and future needs.

3. How long would your dependents need support?

4. Money that would you like to save for your child’s education and marriage.

You need to consider a retirement plan for maintaining a respectable living standard and be able to meet the increased medical expenses. It is advisable for you to take the pension plan at an early stage of life; it will help you in getting lower premium amounts. As you secured all your basic and future needs, you would also want to increase your wealth. Judicious financial investment planning can help you in determining the goals related to wealth and the right path to reach it wisely. The life insurance plan that you have can help you in increasing wealth corpus by negating the effects of inflation.

1. Pension Plan:

Retirement is an inescapable period of life. Would you want to be dependent on others for your living at the old age? If not, then you should plan for your retirement today itself. Pension Plans essentially help you invest your savings so that it can be used after your retirement. Every individual wants to have a tension free and peaceful retired life after years of hard work. However with the rising inflation and people preferring to live in nuclear families one cannot expect to have a tension free life unless one has accumulated great wealth, inherited a huge sum of money or at least have a retirement plan/pension plan.

Pension plan is nothing but:Investment + Death Benefit + Survival Benefit + Regular Income + Tax Benefits

2. Child Plan:

It is very important for every parent to plan for their children's future in time. They want their dreams to be nurtured fruitfully even if we're not around. A Child plan:

a. Financially secure your child's future – no matter what!

b. Finance the turning points in his/her life - Higher Education or Marriage.

c. Secures both parents’ as well child’s life.

d. Also provides with a life cover: Make sure to insure your life also. It is beneficial to buy a plan which has a built in clause premium waiver for future. This would guarantee that the plan continues if you are not there to take care of it and your child would be able to receive assured sum amount at maturity.

e. Cover is obtained irrespective of the state of child’s health on the deferred date

f. Offers flexibility to invest in multiple instrument types depending on your risk profile and requirements.

3. Term Plan:

Insurance Only - The simplest and cheapest form of insurance that is designed to offer financial protection for a specified tenure, say 15 or 20 years. However, if you survive the term, the insurer pays nothing. The best thing about a term insurance policy is that the premium is quite low for the insurance cover it provides. Some insurance companies in India also offer a life insurance policy product that comes with a money back guarantee.

4. Endowment Policy:

Insurance + investment (equities and debt) – Some part of the premium is allocated towards the sum assured and the remaining portion of the premium gets invested in asset markets. It pays a lump sum amount after the specified duration or on the death of the policyholder, whichever is earlier.

5. ULIP - Unit Linked Insurance Product:

In ULIP, a portion of the premium goes towards providing the life cover, while the residual portion is invested in equities and debts. The investment portion in ULIP is subject to market volatility. Investing in ULIP inculcates regular saving habit in a person, which is imperative for the creation of wealth.

6. Money Back Life Insurance:

It offers periodical payment of partial survival benefits during the tenure of the policy as long as the policyholder is alive. In the event of death of the insured, the insurance company pays the full sum assured along with survival benefits.

7. Whole Life Insurance:

Offering the dual benefit of insurance and investment, whole life insurance plans offer insurance cover for the whole life of the person or up to 100 years whichever is earlier. Also the life insurance company calculates bonus on the sum assured, which is paid to the nominee after the death of the policyholder.