Google+ Badge

Tuesday, 20 November 2012

Advantages of Life Insurance

Life Insurance provides the dual benefits of savings and security. The following benefits explain
why this investment tool should be an integral part of your financial plans.


Advantages of Life Insurance


Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that
your loved ones continue to enjoy a good quality of life against any unforeseen event.

Planning for life stage needs - Life Insurance not only provides for financial support in the event
of untimely death but also acts as a long term investment. You can meet your goals, be it your
children's education, their marriage, building your dream home or planning a relaxed retired life,
according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional
endowment plans, offer in-built guarantees and defined maturity benefits through variety of
product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.
 
Protection against rising health expenses - Life Insurers through riders or stand alone health 
insurance plans offer the benefits of protection against critical diseases and hospitalization expenses.
This benefit has assumed critical importance given the increasing incidence of lifestyle diseases
and escalating medical costs.
 
Builds the habit of thrift - Life Insurance is a long-term contract where as policyholder, you have
to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular
savings over a long period ensures that a decent corpus is built to meet financial needs at various
life stages.
 
Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA,
the regulatory body, through various rules and regulations ensures that the safety of the
policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a
long-term savings instrument, also ensures that the life insurers focus on returns over a long-term
and do not take risky investment decisions for short term gains.
 
Assured income through annuities - Life Insurance is one of the best instruments for retirement
planning. The money saved during the earning life span is utilized to provide a steady source of
income during the retired phase of life.
 
Protection plus savings over a long term - Since traditional policies are viewed both by the
distributors as well as the customers as a long term commitment; these policies help the
policyholders meet the dual need of protection and long term wealth creation efficiently.

Growth through dividends - Traditional policies offer an opportunity to participate in the
economic growth without taking the investment risk. The investment income is distributed
among the policyholders through annual announcement of dividends/bonus.
Facility of loans without affecting the policy benefits - Policyholders have the option of taking
loan against the policy. This helps you meet your unplanned life stage needs without adversely
affecting the benefits of the policy they have bought.
 
Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and
exit under most of the plans.
 
Mortgage Redemption- Insurance acts as 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 bereaved family.


 
Contact No : 8714476620
 

No comments:

Post a Comment