How Beneficial is your life Insurance Policy?

In today’s 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 don’t. 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 you’re 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

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:

http://www.bajajallianz.com/Corp/life-insurance/life-insurance.jsp