Sir, I am 37 years old and plan to take a term life insurance for my family, which consists of my wife and 6 year old daughter. I am confused whether I should choose a normal policy which expires after the coverage period, or one which returns the premiums after the coverage period. Obviously, the latter involves spending a higher sum as premium per month. Also please suggest the companies offering policies with better claim settling history

Ans: opting for a pure term life insurance policy is generally advisable over a return of premium (ROP) policy. ROP policies tend to have higher premiums, as they offer to return premiums at the end of the term if the policyholder survives. However, this feature often comes at the cost of higher premiums, making it less cost-effective in the long run.

With pure term insurance, you pay lower premiums for the same coverage amount, ensuring that your family receives a substantial sum assured in case of your unfortunate demise. It's a straightforward and transparent form of protection without any investment component or frills attached.

When selecting an insurance provider, prioritize companies with a strong track record of claim settlement and customer service. Look for insurers with high claim settlement ratios and positive reviews from policyholders.

Remember, the primary purpose of life insurance is to provide financial protection to your loved ones in your absence. By opting for a pure term policy, you ensure that your family receives the necessary financial support without any unnecessary frills or complexities.