Categorized | Life Insurance

Life Insurance- What I Need and What I Have?

If the thought of protecting your loved ones in your absence harbors your mind, you are definitely in need of a life insurance policy. Life insurance is a systematic approach to accumulate the savings according to your future needs of the resources that you already possess.

Need for Life Insurance

You earn well and are very much able to make up with the needs of your family. In fact, you win the expectations of your family when it comes to meet the luxury demands too. In addition to this, if you consider planning for the future events, you would be able to take care of your family in much relieved manner. Life insurance Policy is the way out through which you can financially secure the future of your family and make your present efforts fruitful for the time coming ahead.

Moreover, the need for life insurance has also been felt by many in the situations like thefts, accidents or natural disasters or any kind of disability. Simply put, having a life insurance policy assures that your Dependants are able to have the needed financial support when it is required during their tough times.

Dual Benefited Investment Plan

Planning for the safety of future is important and when it comes to financial planning, it is the smartest thing and a caring act you can do for your family. However, in today’s scenario when wealth creation is considered one of the primary objects, blocking a large chunk of savings may not be the feasible option for many.

For the same reason, buying a life insurance policy would be the most lucrative option as it will appreciate your investment and at the same time provide you the life cover too. This way buying a life insurance policy would benefit you in dual ways.

Life Cover

Basically, the need for life insurance arises due to the individual’s need for security in unfortunate events of life. By buying a life insurance policy, the person is buying good sleep as it ensures him a protected future of the people dependant on him.

Not only in case of untimely demise, but when the Insured person is retired and his earnings are not sufficient enough to feed his family, or in case of an Accident which results in devastating disability, the accumulated savings with the insurance company can be of great help. Furthermore, if fortune favors him and nothing like this happens and the person survives his life insurance policy Term he is entitled to sum Assured with added bonuses and profits his savings have earned him in years.
Healthy Investment Option

Investment plans in life insurance policy provide the opportunity to earn while getting the life insured. One of the typical stay-insured-while-investing plans is unit linked insurance plan in which you get to decide the ratio of investment in equity and debt funds. In this type of investment, a part of your Premium is entitled to your insurance service while rest is invested in the combination of funds that you have decided to accrue your profits from. Added to this, you also have an option to save tax as per the norms of policies.

In short, one needs to have alternatives to rely upon when the circumstances of life are not in favor. Life insurance policy while serving as a means to provide the life cover also acts as a long term investment plan and is a most practiced method to replace your income when you are no more able to cushion the needs of your family.