Ever watched a superhero movie and wished you could protect your family the same way? Well, not exactly like Iron Man, but you can secure your family’s financial future with Life Insurance. Just like a superhero.
Decoding ‘Zindagi ke saath bhi, Zindagi ke baad bhi’
Life Insurance is all about securing your family financially in case of your untimely demise. By paying small and regular payments (aka premiums) to an insurance company, you can ensure that your family is looked after when you pass away.
5Ws of Life Insurance you must know
1.Who should get it:
Life Insurance is essential for anyone who has or will have financial dependents, whether you're married, have children, or support aging parents. Individuals in the age range of 18 to 65 years are eligible to apply for term insurance.
2.What coverage do you need:
Experts recommend having coverage of at least 10 times your annual earnings. This ensures that your family has enough financial support to cover living expenses, debts, education costs, and other needs in your absence.
3. Why is this essential:
Life Insurance is critical for several reasons:
It ensures your family's financial security
It supports your child's future and education
It assists you with loan repayment, easing financial burdens
With annuity-based policies, it provides retirement income through monthly pensions
It offers tax benefits of up to ₹1,50,000 per year under section 80C
4. What are the different types of Life Insurance policies:
There are various types of Life Insurance policies, including term plans, money-back policies, whole life policies, endowment plans, and ULIPs.
However, we recommend term plans for their simplicity and cost-effectiveness. Term plans offer maximum coverage for the minimum premium payout, providing your family with financial security at an affordable cost.
5. Why do they say ‘earlier the better’ when it comes to Life Insurance:
Because you can lock-in a much cheaper premium. 3 indicative scenarios to illustrate our point (assuming appropriate health scenarios)
Checklist before buying Life Insurance
Calculate the coverage required using our ‘Wealth Score’ feature
Select the ideal policy tenure – the longer the better
Shop around to find the best Life Insurance coverage for you
Should you get any add ons? critical illness rider, accidental death benefit, etc
Verify credentials of the company
Check the Claim Settlement Ratio
Check the Volume of Complaints
Solvency Ratio
Assets Under Management
Will a single Plan suffice?
Yes – in most cases, a single plan should do!
Do I get any benefits if I survive the policy term?
Pure-term insurance products do not have any survival benefits. However, remember – insurance is not a source of return! It is to ensure that the family has adequate corpus incase of the insured’s death
Life Insurance isn't just a financial product; it's a shield that guards your loved ones, ensuring they remain protected and supported even in your absence. Just as we invest in our education to secure a brighter future, investing in Life Insurance is a step towards safeguarding your family's tomorrow.