Life Insurance
Life insurance is a contract between a life insurance company and a policy holder. A life insurance policy assures the insurer to pay a lump sum amount to one or more named beneficiaries when the insured person dies in exchange for premiums paid by the policyholder during their lifetime. Though money cannot make up the loss, it ensures no financial problem for the family even after the demise of the policy holder.
Benefits of Life Insurance
Financial Protection of Dependents
The main objective of Life insurance is to financially protect your dependents against future living expenses. You need to insure yourself to 10 to 12 times of your annual income. If you have a policy (or policies) of that size, the people who depend on your income shouldn’t have to worry about their living expenses or other major costs.
Retirement Plans
The policy can supplements your retirement saving, once you purchase a policy up to your retirement age including death benefit or excluding death benefit (Pension Plan). You can accumulate cash at the time of your retirement as your fund value build up over the time. You can use it for cover expenses, such as buying home or you can convert to regular pension by opting different Pension Plan.
Chronic and Terminal Illnesses Coverage
You can take additional rider benefit for chronic and terminal illnesses by paying some extra premium. This will cover your future expenses in case if you diagnosed with a terminal illness, you can use your death benefit to pay for your care even while you are still living.
Cover Plan Expenses
Everyone have some plan expenses like child education, child marriage or buying a dream home. You can buy policy for such a period in order to cover your plan expenses for e.g. your daughter age is 4 year and your plan for her marriage at the age of 24-26 year then you can buy 20 years child plan to cover the marriage expenses of your daughter.
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