A life insurance policy is an agreement between the insurer and the organization to provide a specified lump of money to the insurer’s family and beneficiaries owing to the untimely demise or any other unfortunate accident that may happen to the insurer.
Owning an insurance policy is a very important step towards ensuring financial aid for the nominees of the insurer in his absence. The dependents can be anyone starting from life partner, one’s parents or even children.
Having a life insurance for oneself has become mandatory in today’s lifestyle to ensure ample financial support for a person’s family and close ones. The earning member of the family must make sure that the family continues to function seamlessly even in his absence. Apart from the monetary benefits, there is a whole list of other benefits that the insurer can gain from if he owns a life insurance.
Most people are still ignorant of the varied other benefits that one can realize from an insurance policy. Apart from death and physical inability, a life insurance provides you a whole variety of tax exemptions, benefits related to the matured money, etc.
A major portion of the insured money is reserved for the educational needs of the child.
A term plan assures financial coverage for a specific payment rate and time interval.
Mainly focuses on keeping aside funds for one to use in old age for futuristic benefits.
Offers various additions to your policy amount at various points throughout the term.
On an average, the insurer may have to wait a few years before the insurance becomes valid whereas some may immediately take effect.
Yes, depending upon one’s needs and wants, a person can have as many insurance policies as needed to get maximum coverage for oneself.
Confusion can arise when choosing the right type of insurance.