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There is no denying that you will have greater peace of mind if you know that you and your loved ones are financially secure from various unforeseen situations, such as an unfortunate death or a medical emergency.
Bearing the financial impact of these situations can be costly and may eat into your savings or your family’s hard-earned money. Thus, there is a pressing need for life insurance for you and your family for proper coverage and financial support against all risks linked to your life, health and property. You can also look for life Insurance FAQs available online to know more about choosing the right life insurance plan for your loved ones.
Need for Life Insurance
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Life insurance plans are beneficial to anyone looking to protect their family, assets/property and themselves from financial risk/losses:
- The plans will help you pay for medical emergencies, hospitalization, contraction of any illnesses and treatment, and medical care required in the future.
- They can cover the financial loss to the family due to the unfortunate death of the sole earner. The family can also repay any debts like home loans or other obligations which the person insured may have incurred in his/her lifetime.
- Having the best insurance policy in India will help your family maintain their standard of living in case you are not around in the future. In other words, having life insurance will help your loved ones cover the costs of running the household through the insurance lump sum payout. The life insurance money will give your family some much-needed breathing space along with coverage for all expenditures in case of death/accident/medical emergency of the policyholder.
- Life insurance plans will help in protecting the future of your child in terms of his/her education. They will make sure that your children are financially secured while pursuing their dreams and ambitions without any compromises, even when you are not around.
- Some of the best insurance policy in India from reputable insurers such as Max Life Insurance combines the benefits of both savings and investment schemes along with regular coverage. These help in building wealth/savings for the future through proper investments. You pay premiums regularly, and a portion of the same goes towards life coverage while the other part goes towards either a savings plan or investment plan, whichever you choose based on your future goals and needs.
- With the best insurance policy in India, you can protect your home in the event of any unforeseen calamity or damage while availing significant tax benefits.
How to pick the best life insurance plan?
You can keep in mind these points while choosing a life insurance plan for yourself
- Arrive at an adequate sum assured. Ideally, it should be at least 15 to 20% of your current annual income
- Buy suitable additional benefits, as per your requirement like an accident coverage and critical illness coverage
- Choose a plan that provides regular income to your family after your death
- Remember, low premiums do not mean the best policy. Look for other factors such as the claim settlement ratio of the insurer, and the ease of buying the policy.
Factors that affect life insurance premium
The premium of your life insurance plan depends on several factors. The main factors contributing towards buying the best insurance policy in India include the calculation of life insurance premium based on your age, the type of coverage you are opting for, the amount of coverage, and personal factors such as smoking status, and occupational status. You can also look for life Insurance FAQs available online to know more about choosing the right life insurance plan for your loved ones.