Life Insurance
Life Insurance is one of the basic building blocks to sound financial planning. The key role of life insurance is to provide financial protection for the family of the insured, should the insured die unexpectedly.
Ensuring that your family is safe, secure and has a comfortable lifestyle at all times is of paramount importance to you. However, life is unpredictable. To protect your loved ones from any uncertainties of life, we recommend the Life Insurance, which ensures that your family is always secure and has comfortable lifestyle at a very low premium.
How much life insurance should one have?
Many people often do not realize that, in spite of having a number of insurance policies, they are either underinsured or over insured.
So what is the correct amount of life insurance cover a person should have?
There are two basic methods used today in determining the proper coverage amount required.
- Human Life Value Method (Income Replacement Method)
- Needs fulfillment method.
To know how much Insurance required for you by scientific approach- Fix appointment now.
Human life value tries to measure the economic value of a person or how much the person is worth today in monetary terms.
Needs fulfillment method calculate how much life insurance is required by an individual/family to fulfill their needs and financial goals.
For determining proper insurance cover we gather data of insured’s age, current salary, and current insurance coverage, assets and liabilities, anticipated expenses (including retirement) along with some assumptions around the number of years of income to replace, growth in salary, rate of return etc.
Advantages of Life Insurance
- Risk Cover
- Planning for life stage needs
- This builds the habit of long-term savings
- Safe and profitable long-term investment
- Assured income through annuities
- Protection plus savings over a long term
- Growth through bonus
- Facility of loans without affecting the policy benefits
- Tax Benefits
How to select the Insurance Company.
Types of Life insurance
Term Life Insurance – In this plan the life insurance company promises to pay a specified amount (sum insured) if the insured dies during the term of the plan. If the life insured survives the entire duration of the plan then they will not be entitled to anything, meaning that there is no maturity benefit with such policies.
ROP Term Life – If the life insured dies during the term of the plan, the company pays the specified amount (sum insured) to the nominee. If the life insured survives the entire policy tenure then on maturity the company returns part of the premium or the entire premium.
Endowment Insurance – It offers death cover if the life insured dies during the term of the policy or survival benefit (maturity amount) if the life insured survives until the maturity of the policy. It means both death cover and maturity benefit is available in this plan.
Joint life insurance plans – Joint life insurance plans offer insurance coverage for two persons under one policy. This plan is ideal for married couples.
Whole Life Insurance – this plan covers the individual throughout their entire life and in some plans policy pay survival benefit.
Money Back Insurance – It offers death cover if the life insured dies during the term of the policy and pay money back at regular intervals also pays maturity benefit.
Unit-linked insurance plans (ULIPs) – It offers the benefits of both life insurance and returns on investment. Returns are subject to movements in the capital markets. Carries a higher investment risk and contain fewer guarantees. However, they are much more exible
Child plans – Child insurance plans help parents to save for their children’s future financial needs such as education, marriage etc. offer the dual benefit of savings along with insurance.
Partnership Insurance – Is insurance on the life of the partner. This insurance taken by partnership Firm.
Mortgage Insurance – This 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 family.
