Life insurance is a household name since ages as it provided Risk cover against death of the bread earner in the family. Having a life insurance Policy helps to mitigate financial insecurities, propel wealth creation, and save money that would otherwise get sucked away in paying income tax. Today, insurance is not limited to the term plan only.
There are endowment plans with Maturity benefit, child plans with a survival benefit, and ULIP plans with guaranteed savings as well. Added to these lucrative plans are accidental death and disability Riders and Premium Waiver riders as well.
In short, insurance for life can help you to plan your finances for the future. It helps to fund your child’s education, marriage, or pay house loans. Guaranteed benefits, Risk Cover for life, and Assured benefits make life insurance, the financial security that provides peace of mind.
Term Plan, Whole-Life, Endowment Plans
Often, bread earner is just a single member of the family. There can be aged parents, stay-at-home spouse, and dependent children. What would happen if the only earning member died? Life insurance policy, such as a term plan can provide Death Benefit to the beneficiary. In fact, some endowment plans offer a death benefit and maturity benefit as well after the end of the policy term. It is no doubt, a relief for the family.
Some endowment plans are meant just for the working ladies, single mothers, or spinsters. They can opt for an Endowment Plan which has health-related sops. At maturity, they would be entitled to a lump sum maturity benefit that can be further invested to Annuity plan. Not only during their working career but also after retirement, there is financial security. Risk cover is available throughout the policy term period.
The whole-life plan is available in some insurance life plans where risk cover is for the entire life, say 100 years. It acts as financial aid for the Life Assured and security for the members of the family.
Annuity Plans, Children Insurance Plans, and Riders
Life insurance can be Annuity Plans which provide financial assistance to aged couples after retirement. On the death of the life assured, the spouse would get a death benefit. Double death cover would ensure that the nominee gets death benefit after the death of the couple.
A child is often named the nominee while either of the parents becomes life assured in many children’s insurance plans. The survival benefits are offered at various stages of the policy term to fund the child’s education. If the life assured dies, don’t think that that the child’s future is doomed. The future premiums are waived, thus giving peace of mind to the survivors in the family.
Similar premium waiver rider is available for many life insurance plans in case the life assured dies in an Accident or gets permanently disabled. It is solace for many who suffer from critical illnesses, where a Critical Illness rider helps to waive off future premiums.
ULIPs with Guaranteed Additions
Although ULIPs are non-traditional plans with benefits awarded as per market swings, there are still options to get a risk cover, grow one’s investment, protect gains against market upheavals, and may acquire guaranteed returns. Some are meant just for high net worth individuals where dependents can live in peace while the wealthy life assured secures his life against risks.
Insecurity has always perturbed all “from high profile individuals to stay“at-home parent, single parent, or the lone bread earner with an aged parent in the family. But, why live in fear and stress. Avail insurance for life and find your peace of mind.