Life insurance is a must for all, there being no two thoughts about it. This is primarily because it provides monetary backup for your loved ones, even when you are no longer there to support them. However, while picking up an optimal plan, you need to have thorough knowledge about the right kind of plan that suits your needs perfectly. In this article, we tell you all about the basics of life insurance.
What is Life Insurance?
Life insurance is a policy that provides cover to the insured for a fixed period of duration. This, in perspective, means, that if the insured does not die within the prescribed period of the policy, his/her beneficiary does not get the benefit and the policy ultimately lapses.
For example, say, ‘X’ is 70 years of age and takes a life insurance policy of 20 years. If ‘X’ dies within this period, his beneficiary, be it his child or wife would receive the sum of the matured policy on his death. If ‘X’ survives, no amount is received and the policy expires automatically.
Why do you need a Life Insurance plan?
Well, there may be an umpteen number of reasons for a person to opt for an insurance policy. Depending on your need, a particular life insurance might acquire a different name such as senior citizen insurance plan, etc.
Several factors such as age and financial condition among others determine the premium to be paid in a life insurance.
Here is a list of the top reasons why one should think about buying an insurance policy:
1. To Replace Income
One of the major reasons why people buy life insurance policies is to be able to leave a corpus of money for those dependent of the insured. If you die leaving your spouse or children behind, a good insurance policy would help cover up major expenses in the initial few years before they come to terms with the loss.
2. Dealing with Outstanding Payments
You really wouldn’t want to leave your family in a debt crisis after you are gone! A person’s major portion of life is spent making assets for himself and his family thereby incurring a significant amount of debts. On death, the life insurance policy amount can be used to repay such loans, helping your family avoid additional loans to clear previous ones and to also achieve financial security.
3. Diverse Investment Options
A variety of life insurance plans are accompanied by investment instruments that help you invest for the long term. Certain policies are coupled with some great investment products that pay dividends or share of profit to the insured based on their yearly performance. An insurance policy may invest your money in avenues such as mutual funds and give you returns as per the performance of such funds.
4. Tax Benefits
Every now and then, tax benefits on a range of life insurance plans entice customers to buy one for themselves. This goes a long way in putting away your funds towards a purposeful investment and at the same time, avoiding exorbitant tax rates. Deductions under Section 80C of the Income Tax Act, 1961 concern with life insurance premiums whereby the policyholder stands a chance to save tax up to a certain amount.
Life Insurance Plans of 2018
The best insurance plans are the ones that do not cost you much, yet provide the best coverage possible. You can decide and choose for yourself depending on your needs and budget.
Here are the best of Life Insurance Plans of 2018:
1. ICICI iProtectSmart Term Insurance Plan
- The plan known as iProtectSmart Life provides a cover to people between the ages of 18 and 60 years.
- Several add-ons such as life stage benefit and waiver of premium on account of Accidental Disability is available in this plan.
2. HDFC Click 2 Protect Plus Term Insurance Plan
- The age limit to invest in this plan is from 18 to 65 years.
- The policy duration is from 5 to 40 years.
- There is no limit on the maximum sum assured while the minimum sum assured is INR 10 Lakhs.
3. Aditya Birla Sun Life Insurance Shielf Term Plan
- The min. sum assured in this plan is INR 25 Lakh.
- The maximum age to invest in this plan is 65 years while the minimum age is 18 years.
Where Do You Find the Best Deals On Insurance?
Coverfox.com gives you the correct platform to address all sorts of insurance needs. The portal allows you to carefully study and then choose the best insurance plan for yourself and your loved ones.
Not only can people who smoke or are into the habit of consuming tobacco have options for life insurance plans, but also people of all ages have something for them.
2 key advantages of buying insurance from Coverfox.com are:
1. Professional assistance:
You can get in touch with experts any time to know about the options and details of your insurance plan.
2. Post-sales support:
Right from renewals to claims and related matters, a dedicated team caters to all your requirements.
So, this was all about the basics of life insurance.
We are sure you now have a fair idea of what life insurance is all about and are prepared to choose a life insurance plan for yourself. Undertake a thorough analysis before you zero down to an insurance plan. Choose carefully, for it is all about making a sound investment!