Retirement is a natural progression and only if you are financially secure during these years can you hope to live a comfortable retired life. Pension plans are designed to accumulate your savings during your earning years and thereafter provide you with a regular income after retirement so that you don't have to depend on your children or society.

Further, the premium payment in the case of pension plans can be made as recurring payments for a fixed period of time (regular premium) or once as a lump sum (single premium). Either way, the amount and returns thereon are cumulated and paid out to the policy holder at the retirement date as a lump sum. Part of this lump sum is then used to purchase an annuity which provides post retirement income

When you plan for your future, ideally you should set out with specific goals and these should have costs and deadlines attached to them. Once this is done, money back plans provide an excellent vehicle to take you to the fulfillment of these goals.

Money-back plans are insurance products which pay out pre-defined benefits at periodic times during the entire term of the policy. For instance, in a money-back plan with a 20 year term, 25 per cent of the sum assured could be paid out after every five years (i.e., at the end of the 5th, 10th and 15th year) and the remaining 25 per cent of the sum assured along with the bonus, if any, would be paid out at the end of the 20th year. However, in the case of the unfortunate death of the insured person, the total sum assured (100%) and bonuses will be paid.

Your children are your pride and joy and you would like them to have the best that money can buy. And with a sound financial plan, you can make sure that the materializing of their dreams is not hindered for want of funds. Children's insurance policies and products are designed with this specific aim in mind.

These plans set out to secure you financially against the back drop of constraints such as inflation and the rising cost of education. They help you to fund various aspirations like an overseas education, extra curricular activities, sports training, supplementary vocational education, marriage celebrations, etc. by providing a lump sum amount at a specified future date.

An additional feature offered by children's plans is that they continue to offer financial protection even in the event of the loss of the premium paying parent. This ensures that the amount envisaged is actually delivered even in the event of unforeseen eventualities.

Life is full of risks - both financial and non financial. While it is difficult to eliminate the non- financial risks, insurance helps you to minimize the financial ones. Endowment plans are one such product. They ensure that you receive an assured amount at the end of the policy term plus bonuses, if any. If, due to unfortunate circumstances, the insured person expires during the term of the policy, the sum assured and bonuses go to the nominee. Endowment plans can be taken in the name of minors too.

As the breadwinner of the family, even the best financial plan that you create can go out of gear if you are not around to meet the financial commitments it entails. With term plans, you can be sure that in the event of your unfortunate demise your family will be compensated for the financial loss to the extent that you see fit.

Term Assurance Plans are those plans where the sum assured is paid out only if the insured person dies. There is no maturity benefit under these plans. Due to this feature, the premium amount is relatively low.

The premium can be paid regularly or even in a lump sum, according to the design of the plan. Such policies can be taken either on a single basis or on joint basis.

Insurance has become a necessity, particularly in India where most families are dependent on a single earning individual. Further, since there is no social security available in India, the financial interests of the family have to be protected through other sources. Whole life insurance policies are designed to provide lump sum payments to a family in the event of the death of the insured person.

Unlike term insurance, a whole life insurance policy covers you for your entire life and not just for a specific period of time.

Riders are additional optional benefits that can be attached to a life insurance policy. These can be purchased at a marginally additional premium.

a) Waiver Of Premium

What is: Waiver of premium is a benefit under which payment of premiums is waived off when the insured person suffers total disability. In such a case, further payment of premiums is exempted but the policy continues.

Need: This optional benefit ensures that the policy continues to invest the regular premium as planned and that the objective for taking the insurance policy is not compromised.

b) Critical Illness Cover

What is: If the insured is diagnosed as having any critical illness covered by the insurance company, the sum assured is paid out to the insured person as a lump sum amount. However, the policy continues even as the critical illness cover ceases to exist.

Need: The need for critical illness cover arises because of exorbitant medical costs, which can be covered, at least partially, at a nominal expense through critical illness cover.

c) Accidental Death Benefit

What is: Under the accidental death benefit rider, an additional amount covered under this benefit is payable in the case of the accidental death of the insured person during the term of the rider.

Need: The need for this rider arises because the accidental death of the insured person could cause additional financial inconveniences to the family/dependents due to the event.

d) Accelerated Sum Assured

What is: When Accelerated Sum Assured benefit rider is chosen, the insured person is paid the sum assured on being diagnosed as suffering from any of the critical illness. After the settlement of claim the basic policy is terminated.

Need: The accelerated sum assured is useful when one wants critical illnesses to be covered but desires the same at a marginal cost as compared to Critical illness cover.