As you progress through life and start developing responsibilities, you’ll realize that planning for your future finances is a crucial component to living happily. Life insurance plans are a great way to safeguard your family financially after you’re no longer with them.
Moreover, depending on the policy variant you wish to choose, life insurance is comparatively cheaper than other financial instruments. If you’re still having a hard time being convinced, here’s a list of benefits offered by life insurance plans:
Leaving an Inheritance
Whether you’ve got any assets that can be passed to your heirs or not, you can still choose to leave an inheritance for your family by adding them as beneficiaries in your life insurance policy. It’s a pretty easy and simple way to lay down the blocks for a solid financial future.
Leaving an inheritance allows your dependents to cover any monetary requirements that they might have in the future after your absence. This also makes sure that they remember you forever in their hearts and lives.
Gaining Peace of Mind
Death is surely inevitable, and at the same time, unpredictable like all other natural phenomena as well. However, one thing is certain that it’s bound to happen, and when it does, not even the whole world’s money could replace your presence.
With the help of life insurance, you can gain protection for the uncertain things that may happen in your life someday. It provides peace of mind to you and your family members by assuring you financial security for any unprecedented incidents.
After getting an insurance policy cover, you’ll never have to think again about the well-being and safety of your family after your death. A life insurance policy helps your dependents pass through tough times and protect them from uncertainty.
Paying Mortgages or Debts
Apart from providing your family with an income to help them support their day-to-day expenses, Life Insurance can also be a great financial tool to pay off debts and mortgages such as car loans, home loans, and credit card bills.
Additionally, it can also be used to cover any sudden, unplanned costs at the time of your demise, which may be in the range of a few thousand rupees. You surely don’t want your family to feel any kind of financial burden, especially when you can no longer stand by their side, and when they’re emotionally vulnerable.
Protecting your Dependents
If your family or loved ones depend on you for covering their financial livelihood, your death will have a major impact on their life. Life insurance replaces your income after you’re deceased, and makes sure your dependents have a financially secure future.
If you believe that your partner, kids, or parents won’t be able to sustain a proper standard of living after losing access to your income, life insurance is important for you. From the medical expenses of your parents to the education of your child – life insurance helps tackle it all.
Layering Financial Security
If you’re a parent, you surely think about the well-being of your kids after your death. There will be a time when your children will require a quality education from a reputed college, and maybe in the future, will need a substantial financial corpus as they start a business or get married.
All of this requires a significant amount of money that can be gathered with the help of life insurance policies. Therefore, if you’re looking for your kid’s bright future and fulfill all their monetary needs, make sure you zero in on a policy and enjoy life insurance benefits.
Types of Life Insurance Plans
With the help of life insurance, you can always ensure that your loved ones are covered under financial protection that will help them in the future. Let’s take a look at the several types of life insurance policies available as per varying needs:
Abbreviated as ULIP, the Unit Linked Insurance Plans are a mixture of financial investment and life insurance. They allow you to choose from a great variety of portfolio strategies and funds options, along with the ability to withdraw your money after a five years lock-in period.
This is also a life insurance plan that combines the capabilities of insurance cover and investment. With this plan, you can cumulate a corpus that helps your family meet their financial goals in addition to securing you. It generally offers you a fixed amount as a maturity benefit.
If you want to generate your pension income and live a comfortable life after your retirement, this plan is just for you. Depending on your risk appetite, you can choose to accumulate your funds or invest a lump sum amount.
Term insurance is the most affordable and simplest form of policy that offers a life cover for the financial protection of you and your family. It provides a lump sum amount to your chosen nominee after your unforseen demise.
Popularly known as money-back policies, the endowment plans are completely risk-free investment instruments that come along with an insurance shield. As they aren’t linked to the stock market, the risk factor is lower and it offers several bonuses such as revisionary and terminal.
Whole Life Insurance Plan
This insurance plan covers you up to 99 years of age and differs greatly from other investment schemes with a definite term of ten to twenty years. If you have people depending on you financially their whole life, this plan is a perfect match for you.
As you may have read above, life insurance is certainly a necessity in your life. It acts as a protection tool that minimizes the risk of financial problems in the future. That’s why you should not second guess about purchasing a life insurance plan to secure the future of your family.
Your life is valuable and a lot of people count and rely on it. With the life insurance benefits given above, you can easily determine your suitable reason to get a life insurance cover. Therefore, make sure you do your research and safeguard your future financially.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.