Explain the Benefits and Importance of Term Life Insurance Policy
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You must safeguard your family’s future, especially if you are the head of the family, and run the family primarily with your income. With life insurance policies, you can keep your family safe and protected even when you’re not around. life insurance can be referred to as a contract between an insurance policyholder and the insurance company. The policyholder agrees to pay the term insurance premium, in exchange for life coverage for a specified term. The funds can be claimed after a set period or after the insured person’s death. The term insurance premium can be paid monthly, quarterly, or yearly.
In this particular article, you will discover the types and benefits of life insurance policies that provide you with a life cover. Through these plans, you can make your family members and loved ones financially independent when you are not around.
Types of Life Insurance Plans
In order to understand and further avail of the benefits of life insurance, you need to know the types of life insurance plans. Understanding the aspects of each will help you decide the plan that suits you the best.
1. Term Insurance
You can get a life cover to protect your loved ones with term insurance at the most affordable rates. It is very easy to compare term plans online.
2. ULIP
United Link Insurance Plans are a combination of life insurance and financial investment. Here you get facilities of a wide range of fund options and portfolio strategies.
3. Whole life insurance plan
With such a kind of plan, you can get coverage up to the age of 99 years. This policy differs from other standard term insurance plans, which have fixed terms of 10, 20, or 30 years.
4. Endowment plans
Endowment plans are traditional saving insurance plans that are risk-free and offer insurance shields. They provide bonuses such as reversionary bonuses and terminal bonuses.
5. Savings plan
These life insurance plans combine life insurance cover and investment benefits. While some plans offer you a fixed amount as a maturity benefit when the policy ends, with some you can create a regular income throughout the term.
6. Pension and retirement plans
You can build your source of pension income with retirement insurance plans. You get to choose how to accumulate your retirement corpus.
Understanding the benefits of life insurance policy
Life insurance policies are essential in various ways. The list of benefits given below will guide you to choose a policy.
1. Your family’s financial future is secured
Every parent wishes their children to be taken care of even when they are not around. With a life insurance policy, you can ensure that loved ones will not suffer when you are not present. The aim in life, after all, is to have security for yourself and your family.
2. Establishing financial goals
Everyone has some goals in their life, and money needs to be saved to fulfill them easily. When you compare the term plan and choose the one that suits your requirements you can move towards your goals. A life insurance plan helps you build a corpus and also protects you with a life cover. With systematic and regular payments, the affordable insurance premium allows you to accumulate enough funds.
3. Peace of mind
Your life might be stressful in different ways, but having a life insurance policy will give you peace of mind that you are prepared to save yourself and your loved ones from financial troubles. Whether it’s your retirement or you wish to provide financial assistance to your family, life insurance guarantees protection and contenement.
4. Tax saviour
If you have a life insurance policy, you are eligible to declare an income tax deduction on the life insurance premiums that you pay under Section 80C of the Income Tax Act, 1961.
5. Loans and liabilities
You should surely consider buying an insurance plan if you have taken a loan from somewhere. It makes sure that the burden of your loan doesn’t fall on your dependent in your absence. The most affordable method to get your home loan protected and provide safety for the shelter of policyholders’ families is by having term insurance plans.
6. Planning your child’s education
With the sky-rocketing of education plans, your absence can ruin your child’s future. The right life insurance plan, like a child plan, can ensure that your death doesn’t mean the end of your child’s aspirations.
7. Security for dependent spouse/ parent
If your spouse or parents are dependent on you financially, you must buy a life insurance plan. With this policy, you can provide them with an economically independent life even when you are not around.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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