What is Life Insurance?
Life insurance is a contract between an insured and a Life insurance company, where the insurance company pays a lump sum amount after a certain period or upon the death of the insured in exchange for the premium.
IMPORTANCE & BENEFITS
An untimely death is unfortunate and so are the financial liabilities that need to be borne by the family of the deceased. This affects not only the lifestyle of your dear ones but also hampers their future dreams. The best way to mitigate this risk is to cover oneself through a Life Insurance Plan.
The perks of buying a life insurance policy are beyond just protecting the policy holder’s family in tough times
- Acts as a Loan Collateral
- Ensures continuity of business
- Tax benefit under section 80C and 10D
Few things to keep in mind when selecting a Life insurance plan:
- The plan should provide an adequate family income in case of an untimely death
- Ideally, one should choose a sum assured that is 25 times your annual income
- The tenure of the term plan should be at least up to your working age (65yrs)
TYPES OF LIFE INSURANCE PLANS
- Term Insurance Plans
- Unit Linked Insurance Plans
- Whole Life Insurance Plans
- Endowment Insurance Plans
Employer-employee plan can be offered where a company buys Life insurance cover for its employee(s).
Accidental death and disability
Single pay | Regular pay | 5 yrs. | 8 yrs. | 10 yrs. | 12 yrs. | 15 yrs.