The insured event may be death during the policy term, where the insured amount is paid to the nominee/s / beneficiaries of the life insured.
In case of an endowment product, the policy benefits may be paid on survival up to policy maturity.
Benefits of Buying Life Insurance
- Keeps Your Family Covered
The benefits of buying life insurance are significant to ensure that your family is covered if you aren’t around to provide for their financial needs.
- Customizes Your Financial Planning
Buying life coverage through life insurance plans is certainly an integral part of your financial planning. It helps to remain sure that your loved ones are financially covered if you are not around to provide for their daily expenses.
- Offers Incredible Tax Benefits*
The benefits of life insurance are for you to use if you are not well or have some accident or illness. The best part about the same is that it saves your family from the financial burden during adverse circumstances. Getting tax benefits on the amount of premium you pay for the life insurance policy is crucial.
- Turns Out to Be a Great Helping Hand
If you are wondering what exactly these policies provide. Well, they will be the income replacement you need during the time of need. They will also help cover any medical costs incurred during the time you are unable to work. This type of insurance is crucial because even though we all know something unfortunate may happen in our lives, we don’t know when it will happen. By having these policies, we can keep things in place.
How Does Life Insurance Work?
Life insurance plans describe a contract between the individual and an insurance company that guarantees payment of death benefits in case of demise of the life insured .
What are the different types of life insurance policies? How can you choose the proper coverage for yourself? What if you already got life insurance plans through work? How do you still save money through your life insurance company in India? How to reduce the cost of your insurance plans?
The best way to get the answers is to understand the process. Many a life insurance company in India provide quotes online, thus allowing you to choose a life insurance policy, i.e., the best. Spend time to research about life insurance in India to make an informed choice on alife insurance company.
Select the type of coverage = Sum Assured
Select the period of coverage = Policy Term
Select the period of payment = Premium Paying Term
Select the mode of frequency you wish to pay premiums = Annually, Half Yearly, Quarterly or Monthly
Types of Life Insurance
- Term Plan
Term life insurance or term insurance is one of the life insurance products that offer coverage for a specified term, usually for a limited time period, the applicable term. Life insurance policies are generally purchased to provide coverage for an unforeseen unfortunate event, like the insured person’s death. Term insurance provides financial security and protection for the family members of the life insured in case of an unfortunate event. Furthermore, it provides flexibility so that they can pay a higher premium to get additional coverage in the event of an unforeseeable situation.
- Retirement Plans
Not everyone has a retirement plan with the potential to make a significant income. Not only will you be able to take advantage of tax-saving incentives, but also you’ll have a secure source of income when you need it most.
Most retirement plans offer the benefit of accumulating the required corpus over a period of time so that when you are about to retire you have a lumpsum amount which can then be used to buy an immediate annuity which shall provide pensions/ annuities.
- Unit Linked Insurance Plan
ULIP is one of the best means through which you can secure your financial future. The idea behind ULIP is that it enables investors to purchase a policy for both investment and life cover. When you decide to invest in this plan, one of the main components you would have to consider would be the type of investment you are interested in.
- Child Insurance Plan
Child insurance plans are meant to financially secure the child’s education cost, marriage cost etc.
Most child insurance plan provide insurance coverage for the Parent where the child becomes the beneficiary. These plans usually come with a beautiful feature called waiver of premium which helps in waiving off the future unpaid premiums in case of unfortunate death of the insured parent during the premium paying term. This helps in securing the funds for the child’s future even if the parent is not around.
Some child insurance plans also provide coverage to the child.
- Savings Plans
Many of us have savings plans for the future. When we save, we are essentially investing our income into our future. We can choose to invest in a number of different areas depending on our individual needs and preferences.
Reasons to Buy Life Insurance
When someone passes away, their loved ones tend to be in a state of shock and grief and do not know how to deal with the situation. Buying life insurance helps to make sure that you can provide for your family in the event that you pass away because it gives them some relief financially. It can also help pay for medical bills and other things that may come up in future years. So, there remain many reasons to buy life insurance, but it is primarily because of what it can do for your loved ones and their dreams in the future.
- Facilitates financial support in adverse circumstances
- Enables your family after your demise
- Financially supports your children’s education & future plans
- Offers incredible tax benefits on premiums
- Assists with a steady source of income