A life insurance policy protects the family members of the insured after his/her death. In India, a life insurance policy can be bought by anyone who is between the age group of 18 to 75 years. Also, there are different types of policies available to choose from.
Typically, there are 2 types of life insurance policies:
1) Term Life Insurance – As the name suggests, a term life insurance policy provides cover only for a specific period of time. It is the most basic type of life insurance policy. Although term life insurance is economical, the premiums after the renewal tend to escalate.
2) Whole Life Insurance – As opposed to the previous life insurance policy, whole life insurance offers coverage for as long as the insured lives. However, these policies are expensive to buy.
Besides providing financial security, life insurance policies are often looked upon as investment options. Therefore, we now have unit life insurance policies a.k.a. investment plans. Also, another advantage of these policies is the tax benefits that one enjoys. A unit life insurance policy has a double benefit as it provides future as well as present financial solutions.
Other categories of life insurance policies include Child Life Insurance and Retirement Life Insurance policy. Child life insurance policies provide financial aid throughout your child’s life. Retirement plans are of extreme importance as they offer freedom, security and financial cover.
Along with a suitable life insurance policy, one can also buy extra riders i.e. extra benefits to get better protection facilities. Critical Illness Benefit and Accidental Death & Disability Benefit are some of the common riders available.
Some important points to remember before choosing a life insurance policy:
* Analyse the future needs of your dependents i.e. non-earning family members
* Calculate an estimate of your life value
* Research and compare different insurance companies and their policies
* Assess your lifestyle expenditure before choosing the coverage
Life insurance policy ensures the safety and well-being of your family even in your absence. It protects them from enduring any financial crisis and living their lives with comfort and peace of mind.
An insurance company provides various types of life insurance policies. To buy life insurance policy is the best option to financially protect your family member.
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