What is life insurance?
Life insurance is a contract signed between a person and an insurance company. In exchange for premium paid at regular intervals, the insurance company promises to pay a lump sum known as a death benefit to the beneficiaries of the policyholder after the death of the policyholder. The intention of the life insurance is to provide a financial benefit to the dependents of the person buying the life insurance, to guard them against financial pitfalls in the event of the premature death of the insured person.
The death benefit that accrues to the beneficiaries upon the death of the insured person replaces the income that was earned regularly by the policyholder. This amount can be used by the dependents to pay off debts, meet living expenses and fund education and other long-term goals. You can buy different types of life insurance plans, including term insurance, endowment plans, retirement insurance plans and Unit Linked Insurance Plans (ULIPs). You can buy life insurance online as well, in simple steps. Buying life insurance online is a simple way to make sure your loved ones will continue to be financially secure in your absence.
Buying life insurance does not just help provide financial support in the event of the insured person’s untimely death, but it can also be a sound long term investment by helping you meet your life goals such as children’s education, your retirement corpus or buying a second home.
Frequently Asked Questions
What are the benefits of life insurance?
The biggest benefit of life insurance is that no matter your income level, life insurance ensures that your loved ones can make ends meet if you were to pass away. Buying a life insurance policy at any stage in life gives you peace of mind. It offers a life cover that keeps you and your family protected in case of your unfortunate demise. The life insurance claim in the event of your death will help your family have a secure financial future, by paying for children’s education, paying off debts and helping towards household expenses. The money you invest in life insurance is safe, and your family stands to gain from the benefits of insurance payouts in case of unforeseen circumstances.
Life insurance premiums are eligible for rebate for salaried persons to reduce their tax liability. Life insurance also gives you the benefit of taking a loan against the policy in certain cases. A life insurance policy will help you to plan your life goals, including your children’s education, their marriages and your retirement corpus
ailable with your life insurance policy help you customise your plan and get maximum benefit. There are different types of life insurance which help you reap the benefits of a secure future for yourself and your family.
Who needs life insurance the most?
Anyone who has dependents to support and is an income earner for the household needs Life Insurance. Your loved ones who depend on your income would be negatively impacted by your untimely passing and the subsequent loss of income. A life insurance policy makes sure their financial future is protected through the payouts by the insurer in case of the insured person’s death. If you own a business, it helps to have life cover so that the business is not negatively impacted by your passing. It can help to sustain it by covering expenses and paying debts till your successor finds their feet in the business. If you have taken loans during your lifetime, having a life cover will help your family to pay off your debts with the help of the payouts received against the insurance claim.