Life Insurance provides a financial coverage to specified beneficiaries upon the death of the insured individual. It involves a contract providing for payment of an assured sum of money to the person insured.
Why you need life Insurance ?
First and foremost point is that life insurance isn't for you, it’s for your family. Some people believe that buying life insurance is like planning for their death, the fact is that life insurance is not about death, it's about realizing a peace of mind prepared to face any financial crisis that would hit the family in case of your untimely demise. It provides you with a sense of security that no other form of investment provides. Life Insurance is considered one of the most popular savings/investment schemes that provides sound returns as well as protection and also serves as a Tax saving mechanism.
A Life Insurance Policy becomes a priority with the need to safeguard your family - it is considered one of the most popular savings/investment schemes. Life Insurance plays a vital role in one’s Financial Planning Process & securing the financial future of the survivors. Not only does Life Insurance offer you the ability to plan for the uncertain future adversities affecting you and your family, it also offers you good investment returns and tax benefits.
While taking a Life Insurance policy through any of the BimaStudy partners, do keep in mind
1) Identification of your needs:Before you think of buying Life Insurance what is really important is to identify your needs. E.g. a married individual needs a Life Insurance cover as early as possible as compared to an individual who is single and doesn’t have any dependents. Do read the recommendations below to understand the Life Insurance requirements at your specific stage.
2) Cover required:After you identify your needs you need to ascertain the amount of Sum Assured required. Human Life Value (it’s an estimate of the financial dependency of the survivors on the insured) needs to be evaluated which considers the individual's annual income and expenses along with the inflation rate. This helps in determining the individual’s requirement for Sum Assured.
3) Choose the Policy:After you have decided about your Sum Assured choose the Policy suiting your needs. There are two kinds of Insurance plans - Term plans and Savings-based plans. A term plan insures the individual for a high sum at a low Life Insurance premium acting as a pure risk cover and doesn’t give any returns on maturity, whereas Savings-based life insurance plans give returns on maturity apart from covering you for Life Cover.
