Facts That Can’t Remain Hidden About Life Insurance

Facts That Can’t Remain Hidden About Life Insurance

Facts That Can’t Remain Hidden About Life Insurance

Comments Off on Facts That Can’t Remain Hidden About Life Insurance

The genuine fact about life is that, its unpredictable and we are all aware about it. I am not being philosophical, but it is true! In spite of this, we are still reluctant to secure ourselves and our loved ones. It is observed that, a lot of people die young because of accidents, sudden death, premature death etc. Life Insurance in that case can help you and your family to not only have a secure life, but also help to achieve your long-term goals.

However one such incident did awaken my instinct when my friend’s brother ‘Rohit’s’ sudden demise left my friend and her family’s life in a mess. “Rohit was very particular about his diet, exercise and work life. A hardworking fellow and a dear friend as well. He put his gifted brains in use and was on the verge of achieving his long term goal to set his online business. The most important thing this nerd missed doing was, securing his life through Life Insurance cover. May be it just slipped off his mind, I assume…”

Let us know some “Facts That can’t Remain Hidden about Life Insurance”.

  • One of the best Tax Saving Tool

Most financial experts have always advised on buying a Life Insurance to aid saving. The premium paid on Life Insurance policy has a maximum tax benefit of Rs. 1.5 lakh under section 80C of the Income Tax Act.

  • Life Insurance support at the time of retirement

Each one of us would want their retirement to be in peace and without any tension of financial burden. With Life Insurance one can definitely expect a relaxed life like this.

  • Will look after your loved ones when you are gone

This is one of the most important aspects of a Life Insurance policy. In the Rohit’s case above, though he was the sole earner of the family, his family was quite dependent on his earnings. A term insurance policy would have helped his beloved ones in terms of finances at least.

  • Will help to deal with Debt

A Life Insurance plan will certainly be helpful in getting your home loans, loans on credit card etc paid off

  • Buy Life Insurance when you are young

Insurance companies offer Life Insurance coverages at a cheaper premium when you are young and single. This is because when you are young there are lesser chances of you getting prone to any diseases. So when it comes to buying Life Insurance policy, always remember “the earlier, the better”.

Essential Elements of Life Insurance

The basic elements that effect your life insurance are as below:

  • Age: This is the most obvious factor that influences the premium of a life insurance policy. The premium payable for young people will be low as compared to someone older.
  • Gender: With age another important factor that will determine your policy premium is gender. Both genders male and female have different life expectancy. As per studies the life expectancy of a women is higher than men and hence females get life insurance at slightly better rates
  • Medical history of the policy holder

In case your family has a medical history of diabetes, any heart related diseases, thyroid etc. The chances of you getting them will be higher and so a rise in premium.

  • Life style and habits

The policy premium also depends on the kind of lifestyle you live. In case if you consume liquor or are a regular smoker, the chances of you getting lung and liver related diseases are higher. Hence people who smoke and drink alcohol end up paying higher premium than non-smokers.

  • Profession

A profession like fishing or mining where the risk factor is higher, the chances are that that the insurance company if it provides life insurance the premium payable will always be on a higher side.

Which Plans Are The Best?

Term Insurance

Term Life Insurance is the most simplest and affordable life cover as suggested by the financial experts. It offers financial aid to the beneficiary / nominee of the policy holder. And the best thing about term life is that the payout is completely tax free.

Endowment Plans

Endowment plans offer both insurance and investment benefit to the policy holder. Certain part is allocated towards the life cover and the balance is invested by the insurance company. The life insurance company declares bonuses periodically in Endowment plans.

Pension Plans

A relaxed and tension free life can be achieved through Life Insurance Pension Plans. With regular premiums for a certain period one is liable for a happy retired life.

Money Back Life Insurance Plans

In Money back Life Insurance plans, periodic payment is made to the policy holder only if he/ she is alive as a survival benefit. In case of death of the policy holder the insurance company will pay the entire sum assured along with the survival benefit to the nominee

Thus with few facts and tips on best Life Insurance Plans one can find a life policy  an affordable yet time and energy saving Life policy.

Danny White

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