
Why
life insurance?
Insurance,
be it for health, vehicle, life or home, is essential to cover the
financial implications of unexpected events. Life has no guarantees
is a statement that is clichéd but true. Obviously, no monetary
valuation can do justice to human life, but life insurance does not
aim to do that! It simply aims to provide financial protection in
case of a potential loss of income in the future, which could arise
from multiple factors like death, disability, or retirement.
Term
insurance, a type of life insurance, provides coverage for a certain
period of time or years. If the insured dies over the policy tenure a
death benefit (or sum assured) is paid out. No payout is made if the
insured survives the tenure. The purpose of taking life insurance is
to provide life cover to the policyholder and financial security to
his family. There are two ways the individual can take life
insurance:1. By opting for a pure life cover, also known as term
insurance 2. By taking life cover with a savings component built-in,
also called endowment insurance.
Click Here to secure your family future & their financial independence.
Why
term insurance is better
Term
plans provide pure life cover. This means there is no savings/profits component. They are basic plans which make life insurance
more affordable vis-à-vis other options. It is possible for the
policyholder to opt for a larger life cover at a lower premium when
compared to a similar endowment plan.
5
Reasons Why You Need Life Insurance
In
the prime of life, with age and good health on our side, most of us
do not worry about the uncertainties of life. Financially secure and
physically fit, any future mishap and its consequences are the last
things on our minds. However, contrary to what we might feel, this is
exactly when we need to plan for the future, a future where we may
not be as secure and fit as we are now.
You
need the security blanket of life insurance if any of the following
reasons hold good for you.
Provide
for your family in case of death or disability
If
your family is wholly or partly dependent on your income or your
contribution in any other way, then they will be left in a very
difficult situation in case of any unfortunate accidents. Life
insurance comes to the rescue here by offering a lump sum or a steady
income. Explore term life insurance by visiting our site.
Finance
your expenses and obligations
In
case of the loss of income, your regular expenses and other
obligations in terms of outstanding bills, loans or mortgages will be
tough to manage. An insurance cover will help pay for all this,
removing a big load off your shoulders.
Having
an additional source of income in the later years of one’s life
Life
insurance is not just for death anymore; there are child plans,
retirement plans, whole life plans, etc. These are all good
investment instruments. So, if you are looking for a long-term
investment and do not want to put your money in traditional instruments like FD/NSC/PPF etc, life insurance is the way to go.
Leave
an inheritance for your children/dependents
Even
if your children or dependents do not need financial support after
your death, insurance is your way of leaving them an inheritance that
is large enough for them to lead a life of luxury.
Avail
of Tax benefits
Premium
paid for life insurance is eligible for tax benefit under section
80C. That, in itself, is a good enough reason to buy life insurance.
Check How Much you need to Save monthly for Health and Life insurance
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Some
of the key features that make term plans indispensable include
1.
Larger life cover
Since
term life insurance plans are more affordable it is possible for an
individual to opt for a higher life cover for the same premium as an
endowment plan. For e.g., a 30-year-old can get a term plan with a
cover of Rs.1 crore for a 30-year term by paying a premium.
The
Rs.1 crore endowment plan will most likely be out of bounds for most
30-year-olds. However, taking a term plan for a similar cover is
relatively more feasible.
2.
Riders
The policyholder can attach riders to the term plan, thereby enhancing
the utility of the policy. So, by opting for a critical illness rider
or a critical illness plan, for instance, he is entitled to receive
the sum assured on being diagnosed with the critical illness. This is
in addition to the death benefit of an equal amount on death over the
term of the policy. There are other riders to choose from like –
loss of employment cover, disability cover, and waiver of premium cover,
among others. The policyholder should select riders based on his
specific needs to make life cover more suitable and meaningful.
3.
Enhanced cover
Certain
insurance companies offer the flexibility to enhance the life cover
during critical stages of the policyholder’s life. For instance,
the policyholder may be permitted to enhance life cover by 50% at the
time of marriage and by 25% at the time of turning into a parent. This
makes it possible for him to start with a modest cover and then
enhance it as responsibilities increase as also the ability to pay a higher premium.
4.
Innovative features
While
insurance companies have been quick to innovate in general, they have
been most innovative with regard to term plans. For instance, companies
have been quick and proactive in cutting premium rates, even offering
extra discounts to certain categories like non-smokers, for instance.
Buying term plans is now quite convenient thanks to the internet. It
is possible for a healthy individual, as defined by the insurer, to
buy a term plan over the internet without taking a medical test.
Frequently
Asked Questions & Answers
on
Term Insurance

Click Here to view Life Insurance Companies in India along with important communication details like Details of Key persons, Company Addresses, Fax, Phone, Mobile etc. or you may Click
Here to
visit the IRDA website.