Life is unpredictable, and unexpected emergencies can occur at any time. When planning for our financial goals and security, it is important to not compromise on a life insurance policy. Life insurance policies not only provide financial coverage to you in times of dire need, but they also provide security to your family members who depend on you.
There are some important life and term insurance benefits that you should know about so that you can make an informed decision and avail one:
- Financial Security
Without a doubt, life insurance policies offer financial cover that provides security to you and your family. In times of emergencies, your life insurance plan can come to your rescue.
- Health Cover
Medical emergencies can occur at any time, and your life insurance plan also covers your health in it. There are life insurance policies that provide coverage for hospitalization and critical illnesses as well.
Life insurance policies give you the flexibility to choose from various different options available. Where to invest money? You get to decide and select the life insurance plan that is best suited to your personal requirements.
- Tax Benefits
Life insurance policies also provide certain tax advantages, as the life insurance premium is tax-deductible under Section 80C of the Income Tax Act, 1961.
To have a comprehensive understanding of the benefits of Life Insurance, you also need to know about the claim settlement process. In case of an unfortunate event taking place, the nominee needs to contact the insurer at the earliest to claim the death benefit. The nominee has to provide some information to the insurer such as the cause of death and place of death, the death certificate, insurance document copy, deeds of assignment, any other additional documentation that the insurer requires. The money will be transferred to the nominee once the life insurance claims are accepted by the respective insurer.
If you are wondering how to select the best life insurance policy and avail all these benefits, here are the things that you can do to make an informed decision:
- Get the right advice
It is a no-brainer that when searching for the best life insurance policy for yourself, it is crucial to get the right financial advice. An expert insurance advisor can go a long way in explaining to you the benefits of different kinds of life insurance covers, and helping you choose a plan best suited to your personal needs.
- Research and compare
There are many insurance companies in the market that offer various different plans, and it can be confusing to choose one. The best thing you can do along with getting expert advice is to do your personal research. Your expert advisor will also help you to compare various different plans and recommend the best one for you. So before you purchase a life insurance policy and avail its benefits, spend some time researching and comparing various life insurance plans with your advisor. Know about different policies and choose the one most suited to your need. Also, to understand any particular life insurance plan comprehensively, study the policy documents carefully and read the terms and conditions properly. There is also a ‘free-look’ period provided by insurance companies, which is a duration within which you can return policy if it is not suitable for you.
- Calculate life cover offered
Your expert insurance advisor will also help you in calculating the amount of the life cover being provided, in other words, the sum assured. After analyzing your income, dependent family members, expenses and debts, your advisor will arrive at life insurance suited for you – whether it is a term plan, endowment plan, whole life insurance, unit-linked plan, money back plan, child plan, retirement plan, or a combination of any of these plans.
This is all you need to know about what is life insurance, the benefits of life insurance policies and how to avail them. Purchasing a life insurance policy can be the best decision you make for yourself and your family, so make sure that you research and choose the best plan which fulfils all your requirements!