Life Insurance
Life insurance is a way transferring risk of policyholder’s life to insurance company. In other words, insurance company guarantees the payment of agreed sum of money to the beneficiaries of policy in the event of death of policyholder.
Why Life Insurance?
Losing a loved one can be a traumatic experience for the family. Relatives provide mental support for some time, but life moves on and it becomes more difficult for the family to survive if the sole earning member is lost. Daily needs will remain the same but in the absence of sufficient funds in hand, families will have to compromise on their lifestyle. Moreover, if there are any liabilities that need to be repaid, then the family may have to struggle to make ends meet.
To avoid this, one should be adequately insured. Life insurance has to be viewed as financial support and not as a burden.
Term Insurance
Do you have a term insurance policy? You will be asked about this question frequently. if you have seriously considered life insurance plans to safeguard your family.
Do you have the one?
In today’s volatile time full of uncertainties all over, having term insurance is a must especially if you have a family or dependents. This is the best value offer for your family than any other policy.
Have you ever thought about what will happen to your family in your absence?
Term insurance is the purest form of life insurance. Having a term life insurance insures you and your family from a financial breakdown if anything unexpected happens to you.
Suppose if you are in the 30s and you opt for term insurance then being a non-smoker your premium could be in the range of Rs.8,000-Rs. 9,000 per year for 30 years with Rs.25 lakh cover.
Term insurance advantage
Term insurance offers better value for money. It is especially beneficial for young people with dependents. For the low premium, you can get larger insurance coverage. You can make term insurance exhaustive by purchasing additional riders for critical illness or premium waiver.
The objective of insurance is to protect your family from an unfortunate event. Insurance and investment should not be mixed together. Term Insurance is all about managing risk. As always please consult your financial adviser to purchase the right insurance for you.