We all are victims of vagaries of time and events. Our overall life design covers more than our career, and includes everything like family, home, education, and other situations that leave us tense and worried. Even then, we human beings have the tendency to march ahead without thinking about the obstacles or consequences of our actions. Under the circumstances, the bread winner of the family is often worried and stressed with regards to securing his/her family and children just in case any unforeseen circumstances and/or death impacts his family negatively.
Here, life insurance plans come to the rescue and serve as the most effective ways of protecting families and securing their future the right way.
Benefits of Buying a Life Insurance Policy
Easy to Claim
Life insurance proves to be the saviour in case there is a death in the family. In most cases, the terms of insurance are easy to understand and cannot be surpassed by any other instrument of savings or investments. In the event of death, the claims and the insurance amount is easily settled and collected by legal heirs or the nominee.
In case of investments, it is mandatory for the investor to stay invested and run through the plans of investments or savings regularly’; but in case of an insurance policy, if the policy holder pays his premium regularly (on specified due date), he and his family are secured for life.
Insurance perpetuates liberty and makes the pursuit of happiness a pleasurable experience. In other forms of savings and investments, the amount of funds at disposal is only the amount invested or saved plus the interest accrued, but in case of life insurance the amount realised on maturity is the amount one wishes to have at the end of the savings tenure, which could be the next 10 to 15 years. The icing on the cake is that the policy holder can pay the premium as long as he/ she lives or for a lesser period if desired. No other investment or savings can match the benefits gained from life insurance.
Evaluation of Plans of Insurance is Imperative
Life insurance products offer potential insurance seekers with tons of plans to choose from, and are offered by varied insurance service providers in the country. In general, all insurance plans are structured normally with basic plans like `Whole Life Insurance Policy’, under which legal heirs are entitled to collect a specified sum of money on the death of the policy holder. The second option for the insurance policy seeker is to opt for the `Term Assurance’ plan, under which the policy holder is eligible for an Endowment Assurance plan and the sum assured is paid in case of survival of the assured within the stipulated period, or in the event of his/her earlier death.
Unit Linked Insurance Plans have the potential to offer gains along with the insurance cover, and have tax benefits in terms of income tax and capital gains.
Compare the Premium Rates and Terms of Insurance Cover
It is important for the insurance seeker to compare the premium rates and terms of the insurance cover, prior to finalising the policy. The prospective insurance seeker must read the fine print and all the relevant terms and conditions which are linked to the policy, as failure to do so can create unpleasant situations and may lead to rejection of claims at a later stage.
Disclose all Facts to Avoid Legal Litigation
If you are committed to the cause of protecting your family and taking an insurance cover, it is imperative to disclose all the facts relevant to the policy, as the determination of the premium amount or the acceptability of the insurance proposal needs to be evaluated on these facts. It must be noted that failure to comply with details and false disclosure may lead to the cancellation of the policy and/or may invite legal action against you.