life Insurance

Life Insurance

Life insurance is the best way to create wealth & secure family’s future in the event of unfortunate death of the policyholder. Life insurance can be availed either through “Term plans”  that offer life cover for family’s protection or through “Investment Plans” that help in wealth creation with financial security to meet individuals financial goals 

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What is Life Insurance Policy?

A life insurance policy is an agreement between an insurance company and a policyholder, where the life insurer promises to pay a fixed amount of money in return for a premium, after a set time period or upon the life assured’s death. 

Pure Protection plans are specifically designed to protect the future of your family by providing a lump sum payment, in case of your absence. Whereas a savings plan is a financial product that helps in planning long-term goals like buying a home, fees for children’s higher education, and more while providing life coverage benefits.

How Does Life Insurance Work?

Let’s understand how life insurance plans work with the help of an example:

First, you should choose a life insurance plan that suits you the best. If you are married and have kids, a plan that promises a higher life coverage will be beneficial for your children’s higher education and their future. Depending upon the terms and conditions of the plan, you can either pay on an annual or a monthly basis.

In case of an unforeseen death, the nominated individual should inform the life insurer and file a claim. The nominee is required to submit some relevant documents such as a death certificate, identity proof, etc. The insurer company, after the verification, pays the life cover amount to the nominee. Thus, the future of your family is protected with life insurance and they can fulfill their dreams even after your absence.

Frequently Asked Questions

What is Life Insurance?

Term Insurance is a simple plan, which takes care of the expenses of your family in your absence in the form of a huge life cover for a very small premium. In case of policyholder's untimely death, their family or nominee receives the Cover Amount as per the policy. The plan can be customized to one's needs by including add-on benefits like: Early Payout on Critical Illness, Additional payout on Accidental Death, Additional benefits on Diagnosis of Critical Illness, etc.

Who Should Buy Life Insurance?

Term Life Insurance is for everyone. If any of your family member is dependent on you for their expenses or future needs, then it is highly recommended that you get covered under Term Policy. For example, Your spouse/kids who may be dependent on you currently as well as in future. Similarly your parents who may not be dependent completely on you currently but, may be dependent on their retirement. Buying a Term life Insurance will ensure that your family is not impacted financially in your absence.

How much life cover do I need to protect my family?

Your Cover amount of Term Insurance should be a factor of your family's expenses keeping in mind the inflation as well.

A simple way to calculate is going upto 25x of your annual earnings so as to sufficiently cover your family's financial needs in your absence.

Do you get your money back at the end of a term life insurance?

Term insurance plan offers an option of Return of Premium. In case you choose this option, all the premium paid, excluding GST, is paid back as Survival Benefit, in case policyholder survives the Policy Term

What is asset allocation and how does it work?

Asset allocation, in basic language, means allocating or dividing your assets amongst various asset types, such as bonds, cash, stock, etc. The primary purpose behind the allocation of assets is to minimize market volatility and maximize returns. Allocation of assets works best for an individual when the following factors are taken into consideration: