Readers' Corner: Life Insurance

If a borrower gets a life-threatening disease, the payout from the add-ons helps in the treatment

I am planning to purchase a life insurance policy with a guaranteed return. I am confused between participating plans and the ones that offer full guaranteed returns. Help me decide.

Participating plans offer returns which are partially guaranteed, and the upside is delivered in the form of bonuses. In a non-participating plan, all the benefits are guaranteed upfront. Selection of the scheme depends on your risk profile. If you cannot take any risk with your investment, non-participating or fully guaranteed plans work best. In case you are willing to take some risk and looking for potentially higher returns, then participating plans