What is Life Insurance?
A life insurance policy is something that provides a dedicated sum of money on the demise of the policyholder or after a certain period of time.
Life insurance is a contract wherein an individual is offered financial coverage by an insurance company in exchange for a payment over a period. The payment made to the insurer is referred to as the premium. In case the policyholder passes away during the policy tenure, the insurance company will offer a lump sum amount to his/her nominee. This lump sum amount is called the sum assured on death or the death benefit. Upon completion of the policy term, the policyholder receives a sum assured on maturity or the maturity benefit from the insurer along with some bonuses.
A pure protection plan, such as a term insurance policy, offers only the death benefit. However, there are several types of life insurance policies that offer savings in addition to protection. The savings can be in the form of a maturity benefit or bonus.
Why should you buy Life Insurance?
- Replace income for dependents.If people depend on your income, life insurance can replace that income for them if you die.
- Pay final expenses. Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
- Create an inheritance for your heirs. Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
- Create a source of savings. Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request.
- Tax Savings. Buying a life insurance policy also helps in getting tax benefits under section 80C
At Saferisk, we understand that buying a life insurance product can be a confusing affair. On top of that, deciding on the right sum insured make matters worse. Therefore, our team comprising of experts in Life Insurance vow to make the process simpler and hassle free for the customer. Therefore, do not think twice and protect yourself and your family with a proper life insurance cover. Your future self will thank you!
