Life Insurance

Benefits of Insurance

1. Replacing the Bread in the absence of the Winner

Usually, your family is dependent on you and in your absence, you don't want their life to be haywire. You must have questions in your mind as to who will pay your monthly household expenses in your absence, who will pay for children's education, who will run the business, who will compensate for your monthly income, who will pay for children's marriage?

2. Deals with Debt in your Absence

Your family might have to face a lot of people for the financial liabilities that you may leave behind. Outstanding debts like Home loan, Auto loan, Personal loan, etc. will be taken care of if you purchased sufficient life insurance policy cover. In your absence, your family will get a sum that you have chosen and the debt can be dealt with that amount.

3. Life Insurance fullfills your Retirement Goals

With a life insurance plan, you can be sure of having a regular flow of income every month/year. There are many such plans that you can invest at a younger age and enjoy the benefits of the same in your retirement. Make sure that when you purchase such plans, you must consider the inflation value.

4. Insurance is cheaper when Younger

This is true. Life insurance for younger people is quite reasonable as compared to those at a higher age. This is probably because the risk at a younger age is low and hence premiums are low. Especially in Term Plans, Younger people get to pay lesser premiums for several years and that saves a lot of money

5. Peace of Mind

As discussed earlier, Death cannot be avoided. During tragedy times, the least you can do for your family is to safeguard their financial future. At times, you have to be practical in life and think of all the consequences.

Types of Life Insurance

  • Term Life Insurance
  • Whole Life Insurance
  • Endowment Life Insurance Policy
  • ULIP Life Insurance Plans
  • Money Back Insurance
  • Savings & Investment Insurance Plans
  • Retirement Insurance Plans
  • Child Insurance Plans & Many Others.

Frequently asked questions

The insured must focus on getting a higher sum assured (At-least 15-0 times of his Annual Income). As mentioned above, one can chose from various types of Life Insurance depending on his need. Usually, people nowadays give high preference to Term Plans as they don't want their family to be in trouble in their absence. Guaranteed plans also provide guaranteed sum at a certain age which may help them as per the planning done. Insured must also look at the claim settlement ratio of the Life insurer and since how many years they are operating in the country.
Taxes can be saved irrespective of the life insurance plan you decide to buy. The Life insurance premiums are eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C, and for tax-free proceeds on death/maturity under Section 10 (10D) of the Income Tax Act, 1961.
The insured must focus on getting a higher sum assured (At-least 15-0 times of his Annual Income). As mentioned above, one can chose from various types of Life Insurance depending on his need. Usually, people nowadays give high preference to Term Plans as they don't want their family to be in trouble in their absence. Guaranteed plans also provide guaranteed sum at a certain age which may help them as per the planning done. Insured must also look at the claim settlement ratio of the Life insurer and since how many years they are operating in the country.
Life Insurance offers Peace of Mind. A person who has taken sufficient insurance cover need not worry of what his/her family might have to go through (financially) in their absence. While Health insurance takes care of your hospital expenses that may occur multiple times hammering your life long savings, life insurance gives a sum (as opted by the insured) to the nominee of the insured so that they can live their life accordingly. As told earlier, Life insurance cannot replace the Winner.