Life Insurance
Life insurance refers to the legally binding contract between a policyholder and an insurance company that provides financial protection to his/her family. The insurer promises to offer the insurance benefit in exchange for regular premiums paid by the life insured. The ‘financial protection’ under life insurance is provided in the form of life cover, also known as sum assured. It is a pre-agreed amount that is payable in case of an untoward incident with the life insured.
For the life insurance contract to be enforceable and life insurance quotes to be accurate, your application must accurately disclose your current and past health conditions. Also, you need to pay a single premium or regular premiums as chosen when buying life insurance. You can estimate the life insurance quotes for your financial profile by using the insurance calculator.
Benefits of Life Insurance
Financial Security
Buying a life insurance plan with an adequate sum assured acts as a financial cushion for your family members. It ensures that they will not need to live a compromised lifestyle or disregard their life goals in your absence. Finding the right life insurance quotes for you and your family will be a wise move in planning your finances.
Child’s Future Planning
With the help of life insurance quotes, you can plan for your children’s future, including their higher education plans. The insurance benefits they will receive after you help them fulfil their dreams just as you have planned for them.
Disciplined Investments
Putting aside money to be invested in various financial instruments becomes difficult when there are so many financial responsibilities to cater to. Getting the life insurance quotes can help you distribute your investments more effectively. You can enjoy the dual benefits of life cover and investment with certain types of life insurance plans.
Corpus Creation Over the Long Term
Most life insurance policies ask for long-term commitment to pay the premium timely and help create wealth, which can be used to fulfil various life goals. You can also opt for life insurance plans with maturity benefits to enjoy life with financial independence. When you refer to the life insurance quotes for your financial profile, you will get a clearer overview of how this will work.
Retirement Planning
There are various life insurance plans that you can choose to plan for your retired life. You can select monthly income or lumpsum pay-outs with these plans to enjoy your life after retirement without financial worries. Such life insurance quotes will allow you to plan years ahead of your retirement, giving you a sizeable corpus to lead a comfortable life.
Tax Savings
Life insurance policies help you save tax under Section 80C of the ITA (Income Tax Act). The premiums you pay for a life insurance plan makes you eligible for tax deductions of up to Rs. 1,50,000. You can also save more tax under Section 80D on choosing health-related riders with your life insurance plan. Find your life insurance quotes to plan your tax savings effectively.
Life insurance acts no less than a lifeline for life, especially in the current uncertain times. More people in India are gradually realizing the importance of investing in life insurance.
Types of Life Insurance
Term Insurance
It is the simplest type of life insurance that provides financial safety to the life insured's family in case of the untimely demise. Depending on your income and liabilities, you can select an adequate sum assured under this type of life insurance plan to safeguard the financial interest of your loved ones.
ULIP
A Unit Linked Insurance Plan or ULIP is a unique form of life insurance. It provides life cover while also allowing you to invest money in market-linked instruments. By investing in ULIPs, you get the benefits of market linked returns over the long term, life cover, income tax savings, and flexibility to switch between funds. The life insurance quotes will enable you to determine the amount required for financial security and investment purposes, so that you can divide it efficiently.
Retirement Plans
These plans are life insurance products that provide financial security for your retirement days. These life insurance plans help you invest money during the working years and create a corpus that you can use as a whole or in parts to fund your retired life. You can think of investing in retirement plans as a disciplined way to plan for the golden years of life.
Child Plans
Child insurance plans, commonly known as saving life insurance plans, are designed to help you secure your child's future. Along with life cover, your child receives the benefit of pay-outs at different milestones during the educational journey under these life insurance plans. Investing in child plans shields your child’s future against unfortunate events like death or critical illnesses.
Savings and Income Plans
As life insurance products, these plans can help you instill the habit of disciplined savings to ensure steady returns in the form of monthly income or a lumpsum amount. Alongside, these life insurance plans provide various other benefits, including death benefits, tax benefits, terminal illness benefits, to name a few. Check the life insurance quotes and details before making investment decisions, so you can allocate your money in the right places.
Group Insurance Plans
These life insurance plans are meant for organizations or groups to provide life cover to the employees or group members, respectively. Through group insurance plans, the employers tend to take care of the financial security of their employees’ family, thus motivating them to work harder to maintain high-performing businesses. Keeping this cover in mind, you can check the life insurance quotes for additional financial security for your loved ones.