Buying a life protection plan is necessary, but it should be the right one

Though tax-saving is an essential element of the investments you make during the year, before investing you should consider all the other options available

This is an investment product that will earn regular annual returns of 12 per cent,” goes a typical sales pitch by an insurance agent. And only after you have countered it with facts and figures will the agent confess that it is an insurance product, most probably a unit-linked insurance product, or Ulip. However, most buyers of insurance products do little research and end up buying products that are least suited to them.

Proper financial planning requires you to be adequately insured, be it life, health or non-life. But that does not mean you should burden yourself with products that