It is insignificant to discuss about the significance of a Life Insurance Policy. Life insurance in India
is an essential tool as it lessens your risk and secures you as well as
your family, gearing you up to face the tough times that life throws at
you.
When we talk about a Life Insurance Plan, we are discussing about a written agreement that is settled between a policy holder as well as an insurer when the policy holder pays a fixed insurance premium to the insurance company and he, in return, offers agreed benefits of the same to the policy holder. It is essential to note here that the benefits received might not only be limited to death of the insured person, however, it might also be extended to critical ill health, or terminal illness. Nevertheless, this would depend on the kind of insurance and the kind of written agreement that has been signed by both the parties.
Life insurance plays an important part when you want to get peace of mind for your family. Once you are an insured person, you turn out to be sure that even your absence would not bring any sort of monetary hardships for your family. A regular insurance premium is compensated by you to the insurance company so as to insure this security. You might go for a lump sum payment of premium or prefer a regular every month, every quarter, half-yearly or an annual payment mode, depending on your income as well as preference.
But, if there is no one dependent on your income or if the sum made by you as your income doesn’t form an important part in helping your family and their requirements, in that case you might invest in retirement plans to secure your old age.
Selecting the Life Insurance Plan
Requirement Analysis - It is of utmost importance for you to analyse whether you need life insurance or not.
Financial Analysis - Once you have discovered that you require life insurance cover, the following step would be to perform a financial analysis. This would not just come to the amount that you are able to pay as premium towards your insurance however; it would also involve figuring out the worth of your life. The vital as well as relevant question would be - “How much financial compensation would my family call for, so as to not only sustain themselves however, to live monetarily secure life after my death?”
When we talk about a Life Insurance Plan, we are discussing about a written agreement that is settled between a policy holder as well as an insurer when the policy holder pays a fixed insurance premium to the insurance company and he, in return, offers agreed benefits of the same to the policy holder. It is essential to note here that the benefits received might not only be limited to death of the insured person, however, it might also be extended to critical ill health, or terminal illness. Nevertheless, this would depend on the kind of insurance and the kind of written agreement that has been signed by both the parties.
Life insurance plays an important part when you want to get peace of mind for your family. Once you are an insured person, you turn out to be sure that even your absence would not bring any sort of monetary hardships for your family. A regular insurance premium is compensated by you to the insurance company so as to insure this security. You might go for a lump sum payment of premium or prefer a regular every month, every quarter, half-yearly or an annual payment mode, depending on your income as well as preference.
But, if there is no one dependent on your income or if the sum made by you as your income doesn’t form an important part in helping your family and their requirements, in that case you might invest in retirement plans to secure your old age.
Selecting the Life Insurance Plan
Requirement Analysis - It is of utmost importance for you to analyse whether you need life insurance or not.
Financial Analysis - Once you have discovered that you require life insurance cover, the following step would be to perform a financial analysis. This would not just come to the amount that you are able to pay as premium towards your insurance however; it would also involve figuring out the worth of your life. The vital as well as relevant question would be - “How much financial compensation would my family call for, so as to not only sustain themselves however, to live monetarily secure life after my death?”
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