Why should we opt Life Insurance

Life insurance plays a pivotal role in our life to assure that our family stays a secured life when we are no more, due to uncertainty in our life.

Life insurance is not only a family security enabler but also a financial security source to manage our lifestyle in a way we live and have been living, even when we are medically ill or unable to manage our financial expenses as per our daily needs.

Insurance mirrors the reality of LIFE and DEATH where life insurance denotes the importance to assure ourselves, as our life is important to us and our closed ones. In case of unfortunate demise/death, life insurance provides a secured benefit to our family to meet their daily financial goals inspite of the fact that death is irreplaceable.

It is often mis-conceptualized that life insurance is purely a death benefit plan and can be opted at later stage of life as eventuality of upcoming medical ailments or death is not presumed to be important.

In India, less than 10% individuals own life insurance thus highlighting the ignorance of life insurance need.

• Life insurance not only enables us to meet our financial goals but also helps us support child education, manage loan repayment or handle our medical expenses.
• Today's digital world offers the life insurance plans in the online platform which ease the policy purchase with minimal premium cost and ensures policy issuance with less duration.
• Life insurance is not only restricted to death benefit, as it also provides maturity benefit or critical illness benefit as per the plan relevant to our needs.

Life insurance Plans

Types of life insurance plans are broadly classified into various categories as per customer needs:

• TERM Insurance Plan: TERM plans have been customized by insurers to cater customer needs. Online TERM plans provides higher sum assured with low cost premium. Most common TERM plan currently available are listed below:
  • Standard TERM plan: Death Benefit is paid to the nominee/beneficiary in case of unfortunate demise of life assured.
  • Term Return of Premium (TROP): In case life insured survives till the policy end date, all the paid premiums will be returned to the life insured and in case of death, death benefit would be paid to the nominee/beneficiary.
  • Increasing TERM Plan: We need to cover our family appropriately considering the current inflation rates and this plan helps to achieve it. In this plan, sum assured increases every year at pre-defined % for specified 5/10 years as per insurance plan.
  • Joint-life TERM Plan: This plan ensures that you and your spouse are covered in the same plan. In case of death of one life insured, death benefit for that life insured would be paid to the surviving spouse. In case of the death of death of surviving life insured, death benefit of the surviving life insured would be paid to the nominee.
• Endowment Insurance Plan: If we want a guaranteed return on our survival, we should go for endowment plans. Maturity Benefit is paid to the life assured in case of survival of life assured till maturity of policy and death Benefit would be payable to the nominee/beneficiary in case of unfortunate demise of life assured.
• Unit linked Insurance Plan: If we aim for higher maturity return and ready to invest in funds available in market then this plan helps us achieve it. Death Benefit is paid to the nominee/beneficiary in case of unfortunate demise of life assured & Maturity Benefit (Accumulated fund value on the date of maturity) is paid to the life assured in case of survival of life assured till maturity of policy.
• Critical Illness Insurance Plan: In today's lifestyle, we tend to be subjected to various medical ailments which require financial support for medical expenses and lifestyle needs. Life insurance also covers this aspect in terms of Critical Illness benefit. Critical Illness benefit is payable post diagnosis of any of specified critical illness in the plan.

Best of Luck on your purchase of Life Insurance Policy!