Importance of Life Insurance

Most people usually aren’t interested in Life Insurance until they learn it really works.Thousands of people continue to buy it year over year and fantastically discover benefits while they’re still alive and enjoy it. What do you think is your most valuable asset?
The value of your car, your home and its contents all add up and you probably don’t think twice about getting them insured.
But have you ever thought about how much you’re worth? Your current combined income could mean you’re used to enjoying
life, going on holiday and socialising with friends. Now think what would happen if that income suddenly stopped or was drastically reduced.

Unfortunately, you can’t rely on a Government to maintain your current lifestyle. But putting the right protection plans in place can help safeguard both you and your partner against the financial impacts of critical illness, injury or death. You can replace your house, computer or car but you can’t replace you, your spouse or partner. That’s why it’s important to make plans to help protect your financial future.

You are living life to the full, you may have finished paying your mortgage and the children could have left home. You’re enjoying spending time together and socialising with friends. In short, you’re enjoying your life. But have you thought what would happen if your income suddenly stopped, or was drastically reduced? It is uncomfortable to think about, but how long could you maintain your lifestyle if you were unable to work?

Unfortunately, you cannot rely on a anyone but putting the right protection plans in place can help safeguard both of you against the financial impacts of critical illness, injury or death. Most people usually aren’t interested in Life Insurance until they learn it really works. Thousands of people continue to buy it year over year and fantastically discover benefits while they’re still alive and enjoy it.

Whole Life Policy

How The Policy Works

Whole life policy refers to permanent life insurance as it provides life-long protection and guaranteed sum assurance. For choosing whole life policy, you have to pay a fixed amount of premium for life rather than the increasing premiums found on renewable term life insurance policies. Technically, whole life insurance is not related to term life insurance.

Whole life policy offers cash values, which is the cash available to you if you need cash any time. The premiums in this policy are higher than term life premiums and are guaranteed to remain level for as long as you own your policy.

As long as you pay the premiums, the death benefit will be allocated. Whole life policy is intended and priced for you to keep over a long period of time.

Always remember that if you’re not sure that you’re going to keep this kind of insurance policy or you think that this is a wrong type of insurance for you. In that case, you should look at term life insurance.

Whole life policy ensures something that will unfortunately happen for certain – one’s death, where as Term insures the possibility of you dying during the term period, whether that is 1 year or up to 30 years depending on the type of term insurance you get.

Endowment Plus Plan

Endowment plus plan is a unit linked plan, which offers investment cum insurance cover during the policy term. This plan provides investment, savings and insurance that mean all in one plan. The policy is available for people aged between 7 years and 60 years for a policy term between 10 years and 20 years.

The plan offers a risk cover of up to 11 to 30 times of annualized premium or 1.25 times of single premium. The policy holder has the option to select any of four funds namely, bond fund, secured fund, balanced fund, growth fund.

Features of Endowment Plus

• Minimum risk cover is guaranteed.
• This plan has a facility for Loan after 3 years from commencement.
• Partial Withdrawal is possible after 5 years from commencement.
• Plan can be utilized on the life of a child, above the age of 7 years.
• It has 2 optional riders, which means extra protection.
• Flexible benefit combinations and payment options Additional benefit options such as a critical illness cover.
• In case of a death benefit, higher the sum assured and the policyholder’s fund value shall be payable.

Endowment plus plan not only offers financial stability for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. This plan provides insurance cover and maturity benefits.

Life Insurance Buying Tips

Buying life insurance policy is beneficial for you and your family. Few people approach to life insurance. They start thinking about life insurance after they have had a brush with death or when a life insurance professional brings up the subject.

Life insurance is perceived differently by different people. Depending upon an individual’s age and lifestyle, it can either be taken for granted or considered as critical provision for a family’s financial security.

The life insurance official contract comes under two classes that are, protection policy and investment policy. In case of protection policy, it is typically planned to provide a selected sum in the outcome specified by the policy owner, and the second investment policy is meant to facilitate the policy owner with an increase of capital by regular or single premium. The most ordinary kinds of investment policy under life insurance are whole life, global life and changeable life policies.

Life insurance involves sum assured, which is the amount guaranteed to be paid or allocated in the case of a loss. The plans offered by the life insurance corporation provide a definite amount of money to the insurer in case of life insured dies or becomes disabled due to any accidental case. It only requires paying premium on time and also helps in attaining short term-financial needs like mortgages etc.

Tips Related To Life Insurance

You must understand your income requirements. Get a rough estimate of your insurance needs by adding your debt, estimated costs, and a year of income replacement.

It is good to consult an insurance agent. The agents will have access to many insurance services. They provide different LIC polices that adjoins risk cover with the savings and investment for your future.

For buying an insurance policy, the one thing you definitely need to read the contract thoroughly, and if you need help ask an insurance agent. Never sign before you fully understand all the clauses and are satisfied with the same.

Read the product disclosure statement, which describes the product, its benefits and any limitations as well as its charges.

Once you know which cover and how much you need, compare costs with a number of insurers.

Benefits of Life Insurance

Life Insurance

Life insurance is a type of bond between the policy owner and the insurer. It deals in making policy that individuals buy from a life insurance company and generate financial stability in their future. Life insurance provides a way to restore the loss of income that arises when someone dies. It also covers the new costs that occur after the taxes, probate costs and facilitate many useful plans for your future.

Benefits of Having Life Insurance:

1. Life insurance guarantees to offer a good amount of money or sum in any risk cover uncertainties.
2. You can gain secure and money-making long term investment by the plans offered by life insurance.
3. The main benefit of these plans is they offer assured income through allowances.
4. Insurance perform as an efficient tool to cover mortgages and loans taken by the policyholders.
5. Life insurance is beneficial in retaining your trade from the loss of a key employee.
6. Insurance provides the best deductions on income tax by offering a way of premium for life insurance focus on the income tax rates.

Life insurance protects your family from any type of circumstances like loss of income etc. In general insurance is defined in terms of cash value. Policies are used to pay for the cost of insurance and a portion is linked with investments that develop over time. The time period for surrendering the policy depends on that the policy must be in power for three years or more. The core benefit of cash value is its ability to provide coverage for the whole life of the policyholder. These values can be borrowed against or can be withdrawn from during the life of policy. Any types of taxes on any interest are not required to cash value accounts.

Life insurance provides various plans:

1. Endowment plus
2. Children plans
3. Endowment assurance plan
4. Term assurance plan
5. Whole life plans
6. Special money back plan for women

Life insurance is perceived differently by different people. Depending upon an individual’s age and lifestyle, it can either be taken for granted or considered as critical provision for a family’s financial security. Life insurance guarantees to offer a good amount of money or sum in any risk cover uncertainties.