Life Insurance: A Must Have Necessity
Life insurance is the means to ensure that your dependents continue to have financialsecurity even after your retirement, death or in case you can no longer provide for them due to accident/ disability. By entering into a fixed tenure contract with a life insurance company and paying the premium, you safe guard the financial interests of your family. If you die during the tenure of the policy, your beneficiaries receive tax free cash payout of a pre decided amount. Traditionally life insurance policy only eliminated the uncertainty arising due to loss of a bread winner for the family. But with the changing life style and need to provide a comprehensive cover, the financial investment planning has evolved over time. A good insurance policy can provide any or all of the following:
1) Pure life cover
2) Saving planning
3) Child education plan
4) Financial investment planning and
Rather than taking out a life insurance plan after reaching their fifties, people today are taking help of their insurance policy for financial investment planning of their entire family including their unborn children. A variety of insurance products are available in the market to cater to each and every financial requirement of the insurer. Well recognized and established players like ING Life offer a basket of mixed life insurance plans to suit the needs of every policy taker. Some essential benefits of buying life insurance India policy early in working life are:
1)Meet the fixed cost -Almost every average family has some or other long term fixed obligation like home loan, education loan or medical loan. You would not like to leave your family burdened down with a hefty loan obligation in case anything happens to you. Your insurance cover will help them better to deal with any fixed costs.
2)Take advantage of smaller premium payments early in life - A young and healthy person will have to pay smaller premium compared to an older and ailing one. Thus taking out a long term insurance policy for say 30 years will help you save considerably. Besides, the advantage is that if you do develop some health problems later in life, your insurance cover will help you deal with the financial ramifications of it.
3)Security for dependents - Death is unavoidable, but the pain and anguish of loss can be considerably reduced if the surviving family has a financial planning to fall back on. Besides, your death should not be a reason for your family to curb your childeducation dreams or to do without medical support as they cant afford the expenses. The peace of mind you get from knowing that your loved ones will always continue to live in peace is the biggest reward of investing in life insurance.
4)Affordable Life Insurance For those who cannot afford to take different types of insurance for different needs like health insurance, home insurance etc., taking an affordable life insurance is a better option. Your insurance policy will help you meet with any medical expenses arising due to terminal illness. You can also take out an insurance policy that will make periodic payouts according to your future requirements like for daughters marriage or childs further studies.
5)Meet immediate financial needs Since life insurance-- benefits can be accessed immediately, they can help pay funeral costs and estate settlement costs.
6)Stay independent all your life - The wish to live a dignified life and not have to beg and borrow in the older years can be fulfilled with a life insurance pension plan policy. Investment type insurance policy builds up in value over time and you can reclaim a good amount to life a comfortable aged life.
Whichever life insurance policy you opt for, make sure to understand all the terms and conditions of the policy clearly. Also calculate your minimum insurance needs to ensure that your policy amount is not insufficient when the actual need arises. Finally, invest a practical amount, dont take out an unreasonable premium policy that may be turn out to be a big drain on your monthly earnings.