A life insurance product is by far the most comprehensive investment option for the customers offering the best of all the worlds - right from protection, investment, and liquidity to tax benefit. However, like with any other financial instrument, it is important to realise that different kinds of life insurance policies are meant to serve different purposes, and hence what may be appropriate for an individual may not be for another. Even after one has figured out which instrument is suited to their needs, it is essential to consider several parameters so that the policy which is eventually bought will serve the desired purpose.