Life Insurance Plans – Your Life Time Companion

Life insurance is one of the most rapidly growing sectors in the Indian economy. Especially, since government has allowed for a FDI of close to 26%, many private players have entered life insurance sector. A life insurance plan promises many benefits to insured person and his relatives. In most of life insurance plans, proceeds are generally payable in full to the beneficiary shortly after the insured's death. Some of the advantages of life insurance products has been discusses below.   

Personal benefits

 From living to retirement, life insurance plans provide you protective shield against uncertainties as well as offers many other personal benefits.

·         Funds accumulated through life insurance policies can help you to enjoy your retirement years without being financially dependent on any one.

·         In case of any kind of business transfer, proceeds from life insurance products provide cash to finance transaction between business owners who wants to buy deceased owner’s share from his estate after death.

·         A permanent life insurance policy helps to accumulate great cash value which offers many living benefits to policy maker. Policy maker can also take loan against such policy.

·         Term insurance policy offers death benefit, if insured person dies during the term of the policy and accumulates no cash values.

Benefits for your children and other family members

A life insurance plan promises certain security in the phase of uncertainties. Death of primary bread earner in a family cause great emotional and financial loss to family members. If the primary earner has invested in life insurance, it will provide a new source of cash and income so surviving family members can continue to live in comfort after the death of primary bread earner.

·         In case primary income earner is under home mortgage, he can pass his family residence to his dependent family members without transferring any mortgage liability, if he has invested in appropriate insurance policy for the same. If one has invested in term life insurance plan against home mortgage and if such person dies before the loan is repaid, the balance due would be taken out of the relevant death benefit of the policy.

·         Life insurance plan also provides financial help to secure future of your children for school/ college education, marriage etc.

·         If a primary bread earner has intelligently invested in right life insurance plan, then it will secure his children and dependent family members against getting into the grip of financial crises which may occur on account of his death. It will help to pay immediate death expenses such as final illness and funeral costs and eliminate risk of selling his estate assets to pay off these expenses.

·         On the death of a person, life insurance policy is helpful in paying off his debt and liabilities such as mortgage loans, estate taxes etc. Your insurance policy will be helpful in paying off federal estate taxes from proceeds of policy’s death benefit.

Benefits for business

 Life insurance plans can also be helpful in the phases of business owner’s death and other business contingencies. Adequate life insurance policy can provide proceeds to pay off business loans. It also protect business from financial loss which may arise on account of death of a key employee

From living to retirement and from retirement to death, life insurance products are great means of securing your future. A right insurance plan is not just an investment but your firm companion in challenging phases of your life.