What is Life Insurance Policy?
A life insurance policy is a financial protective shield one has for their family. Life insurance plans ensure a lump sum payment to the beneficiary on the occurrence of the death of an insured person. This is done to cushion the family members from the sudden loss. In the wake of emotional and physical damage, the family is still financially protected in exchange for individual premiums from the insured person.
These premiums can be monthly premiums for some years or a lump sum amount. The details of the insurance can vary from policy to policy. However, the policyholder should make sure that they yield maximum benefits from the investment they are making in the plan in the form of premiums.
Several benefits can be added to life insurance, like funeral costs and other coverage. These can be looked into in-depth while understanding what life insurance is? Life insurance benefits can also be availed in extraordinary situations like that of a critical illness. Life insurance serves both as a protective as well as an investment plan.
In the case of the sudden death of the only earning member of a family, life insurance policies help the family keep afloat while trying to get back on their own. Life insurances can be great investment sources as well since premiums are eligible for a tax deduction.
Why Do You Need Life Insurance Plan?
Life Insurance Plans by Bharti AXA Life
Types of Life Insurance Policies
Comparison of Different Types of Life Insurance Plans
Benefits of Life Insurance
Features of Life Insurance Plan
Who Should Buy a Life Insurance Plan?
How to Choose the Best Life Insurance Plan?
How Do You Save Tax with Life Insurance Policy?
What are the payout options available for life insurance policy?
Important documents to buy a life insurance policy
Life Insurance Claim Process
Claim in case of Death
Claim in case of Maturity
Frequently Asked Questions (FAQs)
Who is most likely to buy life insurance?
A life insurance gives you more than just a life cover. It helps create wealth over the long term, and most importantly, life insurance gives you peace of mind that your family will live comfortably under all circumstances.
Buying life insurance, therefore, is a wise decision for people at different life stages.
- For newly married people as they start a new phase of shared responsibilities
- For young parents as they plan for their child’s future and life goals
- For individuals with financial liabilities and with families to support, children to educate and get married, and plan for their own retirement
- For people doing retirement planning as they look forward to the golden phase of their lives and pursuing their life dreams.
Why should I consider buying life insurance?
At its core, life insurance is a financial benefit for the inevitable contingencies of life. These include death, disability, or retirement, and often result in a loss of income for the household. This is where a life insurance plan truly benefits you and your family.
You should buy a life insurance plan to:
- Provide financial support to your immediate family after you
- Finance your child’s education plans
- Get a steady second source of income
- Gain insurance benefits in case your earnings are impacted due to a critical illness
- Gain tax benefits immediately as per existing tax laws.
What Happens to a Life Insurance policy if the policyholder outlives?
Having life insurance gives you the freedom to take more risk for securing your life and provisioning a large financial corpus in the form of insurance coverage for life’s contingencies. All of this while you continue to pursue your life goals. A life insurance plan also gives you the certainty that should something happen to you, your family would be financially secure.
Life insurance plans help your family stay financially protected in case of an eventuality. Also, the insurance coverage augments the total accumulated value of your investments, ensuring that your loved ones continue to have a lifestyle that you intended for them.