What is Life Insurance?

Life insurance Policy or Life Coverage is a plan that pays the non-taxable lump sum benefit on our death or on any serious illness. A family’s survival is risked if its sole earner dies unexpectedly. The demise of a loved one creates a void that is hard to fill but his/her absence must not disrupt the financial future of the family.

Life cover Insurance is a contract that is between a policy-taker and a policy-making company, under which if an accident occurs unfortunately with the policyholder, then the insurance company assures some money to the nominee Are there. If included in the contract, then we can also trigger payment benefits, even if there are critical illnesses or extreme diseases.

If it is mentioned in the contract, a life insurance plan may also cover some other costs like funeral expenses as a part of the benefit. Life Insurance helps us to get rid of money problems at every level like Retirement, Disability, Critical Illness, Accident, Death etc. life is unpredictable and no one can guess never that what will happen next.

There is no premium calculator that can calculate the worth of human life. Life safety Insurance, which resides in the case of an unfortunate accident, related to financial problems in life.

Benefits of Life Insurance Policy

The insurance provider will offer a lump-sum amount to the beneficiaries or nominees of a policyholder in case of his / her untimely death. This payment will include the sum assured, which is the amount you have purchased the policy for, and the minimum amount of money that the company will pay you before adding bonuses.

Apart from the death benefit, an online life insurance policy also offers maturity benefits in the form of payouts in case the policyholder survives the entire policy term.

In addition, best life insurance policies are also known for delivering tax benefits under Section 80C of the Income Tax Act, 1961. The premium payment that a customer will have to make to an insurance company will be determined by the insurance provider, but the applicant has the option to choose the sum assured as well as the policy term. The insurance company usually determines the premium amount for each individual by considering a number of factors. The sum assured is one such factor, and the higher the sum assured, the higher the premium amount.

Benefits of Life Insurance policies | Compare term-life insurance plan, Whole life Insurance Cover, - XodiInsuranceSolutions.com
why everyone should have life insurance | Compare Family Life Insurance, Child Life Insurance plan, - XodiInsuranceSolutions.com

Why Everyone Should have Life Insurance Policy

Life insurance is one of the best ways to secure our future. It is the safest and secure way to protect our beloved and our kids.

Life insurance dependents against financial contingencies that may arise post the unfortunate event of your untimely demise. Life is too precious so much that it is difficult to put a price on it.

Money surely can’t bring our happiness or affectionate once back. We don’t expect our lives to be cut short, but the fact is that it happens to people every day. It can either happen suddenly, or we can get the kind of news from our doctor that no one ever wants to hear.

Life insurance is undoubtedly mandatory but availing it without understanding its functioning would make your purchase worthless and useless. Before taking any life insurance, everyone should know about the different-different rules and conditions of the insurance provider.

Types of Life Insurance Policies:

  • TERM LIFE INSURANCE – Term plan provides you a pure risk cover. Life Term insurance is the easiest way to get life insurance, which is easy to understand and can be bought in your budget too. A term plan gives you death risk cover for a stipulated period. In case the policyholder passes away during the policy period, the life insurance company will pay the death benefit to the nominee. It is a pure risk cover plan that offers high coverage at low premiums. Term insurance policy is like a social life insurance plan that provides financial coverage to the beneficiary of the insured person for a time. The policy comes useful only when the policyholder dies during the time period. These plans are designed to secure people from unforeseen events such as an accident, a sudden demise etc.
  • ENDOWMENT PLAN – The endowment policy covers the policyholder for a specified time. Everyone wants to live a long life and see their family flourish. Contrary to popular belief, life insurance coverage isn’t just a Defeatist plan meant to protect your loved ones after your untimely death or disablement. You can even use a life insurance policy to secure a happy, fulfilling post-retirement life you can enjoy with your whole family, with the invaluable help of an Endowment Life Insurance policy. For starters, the policyholder has a pool of savings when the policy matures. He can either reinvest the amount or use it to enjoy life post-retirement. Thus, this policy is almost risk-free and offers a steady amount on a fixed date as long as the premium is paid.
  • These are some benefits of Endowment Policy:-
    1. Maturity Benefit: This is the massive amount you receive at the end of the term when your policy matures.
    2. Death Benefit: This is the money for your loved ones receive once they claim it in case of your untimely death. This is parallel to the life insurance policy cover.
    3. Tax Benefits: Endowment insurance plans also offer tax benefit. The premiums you pay can help you reduce your taxable income as per section 80D.
  • WHOLE LIFE INSURANCE – Whole life insurance is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date. Whole life premiums are fixed based on the age of issues. The insured person normally pays premiums until death. Whole life insurance belongs to the cash value category of life insurance, which also includes universal life, variable life, and endowment policies.
  • CHILD’S PLAN – Child insurance is the plan through which we secure the future of our children. Saving for children’s education is one of the most important goals for the parents. It is every parent’s dream to ensure that their children get to pick the best possible educational institutes or career options without any financial constraints. It is important to calculate the amount of fund needed for the future education, the number of years for which cash flow is needed, and how far away we are from achieving that goal today. Take any child’s plan is the easiest way to secure our kids future.
  • RETIREMENT PLAN – retirement planning is the planning one does to be prepared for life after paid work ends, not just financially but in all aspects of life. The non-financial aspects include lifestyle choices such as how to spend time in retirement, where to live, when to completely quit working, to fulfill our basic needs etc. The policyholder is assured of the pension amount as defined, irrespective of the return that is generated by the pension fund. Retirement Planning can provide you a stable source of income even after you stop working. It will help you to meet your post-retirement financial needs.
Tahlia Bidmead
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Tahlia Bidmead

Chief Operation Officer