Life insurance is a protection against financial loss between an insurance policy holder & an insurer or assurer, in which the insurer promise to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person or the beneficiary. Life insurance is a form insurance of a person in which a person makes regular payments to an insurance company & in return get death benefit to the beneficiary family. One can experience most of the insurance benefits if he/she applies for it.
The person having a life insurance plan is a must do a task for every individual. Life insurance Policy is the best way to protect you & your family financially safeguard the future of your loved one. As we all know that it provides protection to the family of the assured person in case of any uncertainty. Different Life insurance Policy has different insurance benefits discussed below:-
Whole Life Insurance Benefits
Covers for life risk
The assured person will get cover for his entire life, unlike other life insurance plans that is fixed for a particular period. The other life insurance plans will expire & it is more expensive to take another one when you really want one. In case you die, a lump sum tax-free amount is paid to the nominee. If you outlive the term, you will not receive any payment from the company.
The survival benefits will be built over a period of time which keeps increasing from time to time. An individual will get lifetime coverage along with guaranteed level of premiums for limited premium payments. Many companies offer survival benefit from the end of the premium payment term till the policy matures. An insured person also gets the tax benefits under Section 80C & Section 10(10D) of the Income Tax Act, 1961.
Term Insurance Benefits
Term insurance is cheap
Like any other life insurance product, you can buy term insurance plan very cheap as compared to the insurance plans. For example, a risk cover of Rs 60 Lakhs for a Male age 26yrs could be as low as Rs 5184 annually, i.e., less than Rs 14per day. If you buy term life insurance at an initial stage of life, the monthly premium can also come down.
Safeguard against liability
During our lives, we had taken a lot of liabilities to buy our home, buy a brand new car & many more things. These liabilities are usually paid over a period of time and in-case anything happens to you the burden to repay these responsibilities comes directly on your family unless you have term life insurance. Term life insurance arms your dependents to manage aforesaid financial problems.
Life Insurance Benefits
The person investing in life insurance gives you and your family a secure life. In case of any uncertainty to the insured, the insurer pays up the entire amount which means sum assured plus the bonus to the insured person family. Life insurance also safeguards the interest of people who have diminishing incomes with people who meet with accidents or for retired people. There are various policies available and you can choose the policy that will best suit your requirements.
Return on Investment
Life insurance provides better yields when compared to other investment options. Most of the life insurance policy offer bonuses that no other investment scheme can offer. The money invested in life insurance is safe and covers risks of the insured. The money invested will give good returns and will be returned fully as sum assured either after the completion of the term or after the death of the insured.
Insurance is a contract between a person (the assured person) & an insurance company. It provides the protection against the uncertainty to the policy holder & provides various insurance benefits to the assured person. The Individual has to pay premium for the risk coverage.