Life Insurance: V Philip

I, 65, want to buy a life insurance policy because I have a six year-old grandson to look after. My son and daughter-in-law are no more and I don't have any policy. How do I go about it?
There are certain plans available in the industry for which the maximum entry age is 65 years or more. You may buy one such and select a regular or single premium option, depending on your comfort level. To secure your grandson's future financially, you can go for a moneyback plan, timed to match your grandson's key years such as beginning of higher education and so on. It is advisable to club a family income benefit rider with the plan, so that in case of any unfortunate event, your grandson's regular expenses would be taken care of through a regular income from the plan.

When making an investment, it is said to look at the track record of the firm or fund? Or, look at whether it is a public or private sector firm? Does this also apply when one is selecting insurance plans?
Insurance is an investment tool to secure your and/or family's future in the event of an unfortunate contingency like dying too young or living too long without a regular source of income. Thus, it is important you select a plan keeping in mind your family's needs, besides your current and future liabilities.

Before selecting an insurer, check the firm’s track record, including its claim settlement record, available in their websites or with the regulator. It is important to know that with more experience comes better processes and customer service. Also, consider the branch network of the insurer for accessibility. Many companies offer 24x7 customer service helplines. You should also look at fund performance and bonus declared by the firms in the previous years.

The writer is the CEO of Bajaj Allianz Life Insurance. The views expressed are his own. Send your queries to yourmoney@bsmail.in