KEY BENEFITS OF LIFE INSURANCE

You may be asking yourself these questions:

• Should life insurance be part of my financial plan?.
• Should I buy life insurance only to cover risk?
• How much life cover should I buy so that my family is financially secure when I am not around?
• Are there other aspects I should consider while looking at a life insurance policy?
• How can I be sure that the life insurance policy being offered is the right choice for me?

In order to get the answers, you need to know the key benefits of life insurance. A good insurance policy would offer you these benefits:

• Life Cover: This is the key benefit that will make the difference in your life, or after your life. Life cover simply means that if you have taken a life insurance policy and if tomorrow misfortune strikes leading to your death, then your family stays financially protected. This is because the life insurer will pay a lump-sum amount to your family.
  
  However, you need to be sensitive about how much life cover you need. Remember, life insurance is taken to cover the risk of an earning member not being there. The Life Cover amount should be sufficient to take care of the family’s expenses.
  
  A good thumb rule is to ensure that your life insurance cover is at least 10-15 times your annual income. For example, if your annual income is Rs 15 lakh then your life cover should be at least Rs 1.5 Crore. Similarly, if your annual income is Rs 2 lakh per year, then your life cover should be at least Rs 20 lakh.
  
  To understand this better, you need to ask the following questions. Imagine if tomorrow you are not around for your family, then:

  
  

  • How much money will your spouse or parents need to manage daily expenses?
  • If you & your loved ones had planned to buy a house or a new car, then how much money will they require if you are not around to fund it?
  • How much money will your children require to complete their education?
  • How much liability have you already accumulated from which the family needs to be protected?

  There could be other questions like these that are personally relevant to you but need to be asked so that if tomorrow you are not around, your loved ones should still be able to meet expenses & aspirations. Buy a Pure Protection plan or a Savings + Protection plan that will provide sufficient Life Cover to secure your family’s financial future.
  
  Click here to calculate your ideal life cover now.

• Long Term Savings: Life Insurance is also a good way to systematically save and build up funds for the future. It is an ideal long term savings tool that can help you meet your financial needs after retirement or even fulfil a future goal like your child’s marriage. Thus with life insurance you get dual benefits of Protection + Savings.
  
  Click here to view our plans that offer Protection + Savings.

• Tax Advantage: You can get tax benefits on premium paid towards Life Insurance policies under Section 80C, Pension policies under section 80CCC and Health policies under section 80D of Income Tax Act 1961. So, when you buy life insurance, you get protection over a long term basis and you also get tax benefits.

But, make sure that you always check that the policy you buy provide these benefits. By the way, all our products offer tax benefits. Click here to check them out.