It is well known that insurance plans come with a host of tax benefits. A diverse range of insurance plans are now available in the market, but you must pick the plan that is best suited to the requirements of you and your family.

Here are the parameters you should consider while choosing a plan:

To find the right plan, you should first consider thestage of lifeyou’re in. New parents can start saving for their child’s college education with Generali Central’s Assured Education Plan. For senior citizens, a health insurance cover will help pay the bills in case of a medical crisis.

Another parameter is your appetite for risk.Young investors with a relatively higher risk appetite are interested in growing their investment portfolios. They can opt for  Future Central Big Dreams Plan. As a ULIP, it offers boosted returns, flexible investments in markets of your choice, as well as tax-saving benefits on premiums and payouts.

One should also address how muchparticipationthey want in their investments. ULIPs require the personal involvement of the insurer. The insurer can choose the funds they want to invest in based on personal preferences. One can opt for equity, debt, or hybrid funds, and switch between them if need be with a nominal charge. Non-participation plans such as traditional life insurance often only require premiums from your end. They do not offer the flexibility of ULIPs and focus solely on accumulating a corpus as your savings without market-linked growth.

The tenure of your policy is also a useful parameter to consider. Plans have short, medium or long terms. ULIPs and Pension plans are better suited to long term investments.

Finally, cost and coverage are two essential parameters. Based on the price of premiums and the tenure of your plan, is the extent of coverage enough for your needs? Generali Central Heart and Health Plan, for instance, provides coverage against 59 critical illnesses. The sum assured is 105% of the premium paid, with tax-saving benefits, which makes it one of the best ways to protect yourself against rare medical emergencies.