- Your cart is empty
- Continue Shopping
Life Insurance: Protecting Your Loved Ones' Future Life insurance is a critical financial tool that provides invaluable protection for you and your family. In uncertain times, having a life insurance policy in place can offer much-needed peace of mind, ensuring your loved ones are cared for even after you're gone.
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Why Life Insurance
Life insurance is important, as it protects your family and lets you leave them a non-taxable amount at the time of death. It is also used to cover your mortgage and your personal loans, such as your car loan. Your individual life insurance follows you when you retire and you are no longer insured by your employer. This insurance will also replace your family income when resources are less so they can maintain their quality of life.
Benefits Of Life Insurance
Most of us often tend to ignore the importance of sound policy as we think it is not required and what could possibly happen to us?
This leads us to believe that life insurance is not worth the money for but a sudden mishap/accident leaves us feeling fearful of the future-for us & our family.
There is no two way about what an individual wants- financial security & protection; for which life insurance is the best option available. There are multiple advantages to availing a life insurance plan, let us glance at them:
Offers Risk Cover
In case of an unfortunate event, you and your family are protected with a high risk cover.
Death Benefits
Sudden demise of a family member leaves the dependents grief-stricken and during such situations financial worries should be the least they should think of. An adequate life cover ensures that one’s family is well taken care of in case of such incidents. The insurer pays up the bereaved family the sum assured along with any bonus or profits, as applicable.
Tax Benefits
Under Section 80C of Income Tax Act, investments made in certain specified instruments are subject to tax rebate. Moreover, Section 80C is an effective way by which a salaried person can reduce his/her tax liability. Since life insurance premiums are taken into consideration, it can be a way that will help you reduce your tax burden.
Loan Facility
As per policy provisions, you can avail loan facility to meet any emergencies. The loan amount can be taken in a percentage of the sum assured of your life insurance.
Assured Returns/Income Benefits
Certain policies that offer money back benefits helps in keeping your family secure with regular & timely payouts. This income helps in meeting certain regular expenses like rent, bills, loans, etc.
Life Stage Planning
Insurance enables you to effectively plan for every life stage and needs during that stage. Life insurance can be viewed as long term investment instrument that provides solid financial support. As per your life stage and risk appetite, you can fix and meet all your financial goals whether it is your child’s education, wedding expenses, buying dream home or your retirement- all taken care of.
Investing in life insurance is not just about planning for the inevitable – it’s about safeguarding the future of the people who matter most to you. Whether you’re the primary breadwinner or simply want to secure your family’s financial stability, life insurance can make all the difference.
By securing a life insurance policy, you’re making a powerful statement – that your family’s well-being is your top priority. Don’t leave their future to chance; take control and explore the life insurance options available to you today. With the right coverage, you can rest assured that your loved ones will be taken care of, no matter what tomorrow may bring.
Life Insurance: Securing Your Family's Future
As we navigate the complexities of modern life, one aspect that demands our utmost attention is the well-being of our loved ones. Life insurance stands as a powerful tool to safeguard your family’s financial security, even in the face of life’s unexpected challenges.
At the heart of life insurance lies the fundamental principle of protection. By investing in a comprehensive life insurance policy, you ensure that your family will be provided for, no matter what the future may hold. Whether it’s covering outstanding debts, maintaining their standard of living, or securing their long-term financial goals, life insurance offers a reliable safety net that can give you peace of mind.
Got A Question?
What Does It Offer?
Insurance has lot to offer in terms financial security and peace of mind. It ensures that your family is taken care of in your absence. It not only helps in providing coverage for all sorts of risks, but builds an opportunity to help you grow your investments. Life insurance is a long term investment tool that helps you meet future costs like children’s education expenses, retirement expenses etc.
There are plenty of life insurance plans available, depending on an individuals needs, many of these plans can also be customized to meet their likes.
Why Is It Important
Single Individual
Even if you have no immediate dependents relying on you financially, it doesn’t mean that you don’t need a life insurance. There are many costs that you need to factor in and which needs additional income to fulfill them. Life insurance helps you meet such expenses while safeguarding your current income.
With Family
Unexpected passing of an individual leaves a lot of void and the surviving members are left to cope with a lot of stress and trauma. And no matter what, expenses never ceases to exist; it just piles on- be it rent, childcare expenses, loans, etc. In such scenario, loss of income would cause an immediate financial hardship and your loved ones are left struggling. Nobody wishes this upon their family, hence life insurance needs to be seriously considered.
Types Of Life Insurance
Term Life Insurance
The most affordable form of life insurance, premiums of plan under this category are cheaper compared to other life insurance products. The Sum Assured is paid out to the beneficiaries on the completion of the policy tenure.
Whole Life Policy
As in the name, this type of policy covers an individual for his/her entire life. This type of insurance covers insurance and investment components. The insurance part covers the nominee in the event of death of the policyholder and the investment component helps the holder to borrow or withdraw against.
Endowment Plan
One main difference that Endowment Plans offer from term plans is the Maturity Benefit. This type of plan pays out sum assured along with profits under both scenarios – death & survival. The profits that are availed in such plans are the result of investment in equities & debt.
Unit Linked Insurance Plans (ULIPs)
As the name suggests, this plan is linked to the markets. This type of plan are a variant of traditional endowment plan and pay out a certain sum assured on death or maturity, whichever is earlier.
Money Back Policy
This type of policy gives out periodic payments over the policy term. Incase of the death of the policy holder, the beneficiaries get the full sum assured and if the holder survives the policy term, he/she gets the balance amount (sum assured).
Annuity/Pension Plans
A retirement annuity plan (RAP) is a pension plan designed to build a lump sum for retirement. Part of the lump sum must be used to buy an annuity and part can be taken a tax free lump sum.