How beneficial is your life insurance policy

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Post on 22-Jan-2018




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  1. 1. How Beneficial is your life Insurance Policy? In todays complexities of the world when you list the financial assets on your balance sheet you may have run many things on your mind such as house, vehicles, retirement funds or financial investments. The one simple and essential element that should always include in your financial plan is your life insurance policy which offers benefits that other assets dont. Yes, today life insurance is that asset of your life which will not only help you and your loved ones to lead a safe and secure life till youre alive but also when you are not in this world. By buying life insurance you are making a considerable purchase that in many cases can prove to be worthwhile. Some Insurance policies like whole life insurance and universal insurance present the combined benefits of death and investment which tend to attract many buyers. Some benefits of Life Insurance Policy Simplicity Buying a life insurance policy as an investment strategy makes things simpler for your life, compared to other forms of investments. It is designed to assist people who are too busy in their hectic and complex lifestyle be it education, work, career, growing old etc. Buying a life insurance policy is one type of investment you conveniently plan for your future and offer financial stability and protection to your family. Protection A life insurance policy offers the required protection to your loved ones in the event of your premature death. It can offer a financial support when needed and offset the impact of estate taxes upon your death. The death benefit can also provide surviving family members with funds they need to live comfortably and achieve their goals. Consistent and Safe Accumulation Permanent life insurance policy helps in getting guaranteed cash values which means you will always have access to the assets you accumulate. Protection against rising health expenses
  2. 2. Health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has started gaining critical importance due to the increasing incidence of lifestyle diseases and escalating medical costs. Safe and profitable long-term investment IRDAI, the insurance regulatory body, through various rules and regulations ensures the safety of the policyholder's money in the growing sector of life insurance and health concerns. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on long-term returns and do not take risky investment decisions for short term gains. Mortgage Redemption Life Insurance proves to be an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the family. Things to remember Most cash value policies contain required premiums that can increase over time. This will make the policy quite expensive for people who are budget conscious and wish to purchase enough coverage to benefit their family in the event of their death. Although many policies contain options such as dividends from cash accounts can be used to pay premiums but such an instance almost always results in taking funds from the cash value or investment account. Secondly, for term insurance, it is not permanent and expires after a certain age or dedicated tenure which again runs concerns in your minds. And if you have to purchase a new policy it will be based on the then age and health in order for coverage to continue lifetime resulting in much higher premiums or un-insurability. Consideration Always consult an experienced insurance agent before buying life insurance policy. It is very important to find a life product which is tailored to the specific needs of the individual policyholder and his or her family. To know more click here:


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