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LIFE INSURANCE PRODUCTS
Why Life Insurance
Are you looking for a Life Insurance product?Â
Well, this section may help you to understand the life insurance and its importance. In general, the Life insurance provides financial security to the family in case of the unfortunate death of the policyholder. Life insurance can enable the family of the policyholder to stay financially independent without any compromise in lifestyle. In other words, Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. A life insurance policy can be a good saving/investment plan for the future or a pension/post-retirement plan. This depends on the type of policy.
Now you can understand why the life insurance is compulsory to everyone individual and firms. About 10 percent individuals and firms in India have a huge accumulated funds that can fulfill the requirements of their successors but the history reveals that there is no guarantee on this assumption because accumulation may be destroyed any time due to any of reason. The remaining 90 percent population and firms have to secure the futures with the liabilities in case of unfortunate event. Thus the life insurance is one and only one key solution in this situation because it has so many features that can provide the unique solution for everything. Therefore, everyone should have an expert advice of experienced financial advisor for proper financial planning.
What Does It Offer?
Insurance has a lot to offer in terms of financial security and peace of mind. It ensures to take care of your family in your absence. It not only helps to provide coverage for all sorts of risks, but also creates an opportunity to grow your investments. Life insurance offers a long term investment to meet the future’s requirements like children education expenses, retirement expenses etc. There are so many life insurance plans to fulfill the general needs of an individual and most of plans can be customized for a specific requirement
Types of Insurance
Term Life Insurance
The term life insurance is a most affordable form of life insurance. Plans under this category have cheapest premiums compared to other life insurance products. In the event of an unfortunate demise during the policy term, nominees will receive the ‘Sum Assured’.
Whole Life Policy
The name of product itself clarifies that it covers an individual for his/her entire life. with insurance and investment components. Whole life insurance builds cash valueand provides permanent coverage. Itcan help to build family’s wealth over the long term.
Endowment Plan
An endowment plan/policy is a life insurance contract designed to paya lumpsum after a specific term or on death. Typical maturities are up to a certain ages limit. Some policies are also pays out in the case of critical illness.The profits that are availed in such plans are the result of investment in equities & debt.
Unit Linked Insurance Plans (ULIPs)
A Unit Linked Insurance Plan (ULIP) offers the dual benefit of investments to fulfil long term goals and a life cover to protect to family financially in case of an unfortunate event. These plans are linked to the markets and are variant of traditional endowment plans.ULIPs pay out a sum assured and unit fund value on death or maturity which ever be earlier.
Money Back Policy
In the money back policy plans money is returned to the life insured as a survival benefit after a set of periods. When the policy holder survives the policy term, then money back with maturity value will be payable to him . In the event of the policy holder’s death, the nominee receives the death claim as well as any accumulated bonuses if any.
Benefits of Insurance
The life insurance provides financial security, it helps to pay off debts, it enables to pay living and other expenses including final expenses. In fact, the life insurance provides a series of benefits like children education, children’s marriage, income replacement, tax benefit, guaranteed cash value growth, dividend potential and many more optional riders for specific needs .Each and every individual has the moral responsibility to protect their families with the proper insurance and investment planning right from beginning. An expert financial advisor can advise the need based planning according to financial parameters.
Why It is Important
The impotance of life insurance cannot be explained in words because it drives the lives in the presence as well as in absence of insured person. Therefore, it has a significant importance if anybody wish to protect his/her family or dependents from any economic hardship in his/her absence. It’s a very essential tool that helps to build wealth and at the same time offers a complete protection to the family of insured person.
Single Individual
Even if you have no immediate dependents relying on you financially, it doesn’t mean that you don’t have a need of life insurance. There are so many other mid-term and long term requirements that can be fulfilled   from life insurance. A major benefit is the availability of plan on a low premium as compared to plan for higher aged individual.
With Family
Every family has a living slandered in the social system which depends on the earning person of that family and the basic requirement and expenses are formulated accordingly, but In case of the death of earning person the family income is destroyed unexpectedly .In such a  case, family falls into a financial hardship. Therefore, each family should have the income replacement option to survive the family  without any financial hardship.  Hence, everyone should consider to get insured with a suitable   life insurance plans that fulfil the accountability towards the family.
What to buy
There are so many categories of insurance policies available in the market today. Looking to the basic financial parameters, future’s need and liabilities, your Financial Advisor may help you to pick out the right one. You have to just share your complete details with the financial advisor. Your FA is well-equipped to make a prudent choice for you.
