Why do I need Life Insurance?
Life insurance is an excellent way to secure your future against some losses by paying premiums over a specific time. Our life is full of risks that may be due to serious health hazard, financial losses, accident or even fatalities. Though life insurance can’t support you against losses you experience emotionally, it reduces the economic crisis and accompanies to fill up the financial loses.
Basically, you can face both pleasurable and unpleasant incidents in your entire life. By investing in the best financial planning tools, you can prepare yourself to face future uncertainties.
Life Risk Cover – A life insurance plan gives high life risk cover on a very small amount of premium.
Loan Facility – Life insurance gives policyholders the benefit of availing a loan against the life insurance policy. So, not only does it provide security, but it also helps when one is going through a cash crunch. A loan against life insurance policy is a popular choice for customers, as lower rate of interest is charged in comparison to a personal loan.
Tax Saving – Under Section 80C, premium paid for life insurance policy, qualifies for tax deduction. Life insurance is a useful tax planning tool, because the policy holder is eligible for tax benefits under the Income Tax Act (1961).
Accidental Coverage – Life Insurance as a product provides additional coverage for a wider range of possible accidents or disasters that could occur in our day to day lives. It provides specific coverage against the loss of life / loss of limbs / disablement / etc. due to accidents of a general nature related to travel or work.
Attractive Returns – Life insurance is a great investment idea. It’s sounded very attractive because with Life insurance plans you will get assured tax-free income as well as a life cover
Monthly Income – Life Insurance policy gives different payout options like part sum assured plus monthly income. 50%-70% of the sum assured is paid to the nominee immediately after the death of the policyholder and the remaining part is paid in the form of monthly installments to support the family’s regular financial requirements.
Pension – Life Insurance pension plan is most suited for senior citizens and those planning a secure future. This is specially designed to meet your post-retirement needs such as medical and living expenses
Valuable return on your investment
Life insurance is a safe investment tool as compared to other investment option. The money you invest in your policy is returned to you in sum assured plus maturity and other bonuses at the end of the term or after the demise of the insured.
In case any unexpected thing happened to the insured, which results in the loss of income for their family, the insurance company provides compensation in the form of the death benefit. The nominee receives the full sum assured plus the bonus accrued over a period.
Monthly income / Pension
Apart from providing protection against death, life insurance policies provide the benefit of monthly income, which is a great boon for people old-aged people or people who are nearing the retirement age and have diminishing income
One of the many advantages of life insurance is that it provides many tax benefits. If you are a salaried employee and have purchased a life insurance policy, you can claim deduction under Section 80C
Q. What is Life Insurance?
Life Insurance is a contract between a person and a life insurance company to reimburse his/her beneficiary (usually a spouse or child) at the time of his/her demise. The reimbursement amount is pre-decided based on the terms of the policy.
Q. Why is Life Insurance useful?
Life Insurance is useful to provide your family with financial security in case circumstance that throws you into a situation where you cannot earn or in the case of your premature demise. It helps keep your family in a position to enjoy financial security even after your demise. Life insurance policies also offer you the ability to save, which helps provide financial stability.
Q. Is Life Insurance necessary?
Life Insurance is not necessary but is a smart investment to make, especially if you have a dependent spouse and children. It offers your family the benefit of financial support even after your death. In addition to this, it offers a number of advantages and provides a lot of flexibility on your investment
Q. How do I decide on the amount of life insurance I need?
The amount that you receive on maturity depends on the amount of premium you pay. The maturity benefit you need depends on your standard of living, income, spending habits, etc. You should aim to receive a maturity amount equal to 8 to 10 times your annual salary.
Q. What if I don’t pay my premium on time?
Client will get a grace period varies from 15-30 days based on payment frequency. If you still don’t pay after this the benefits and maturity amount will be recalculated based on the paid premium. Otherwise contact TIIAS to reactivate the policies by paid the pending premiums.