Types of Life Insurance Policies
- Term Life Insurance: This is pure lifeinsurance with additional benefits and tabs to extend your coverage. However, it does not include any savings or maturity elements.
- Life Insurance: This insurance provides whole life insurance with a savings element.
- Endowment Insurance: Endowment insurance provides life insurance until the end of the policy period, and the maturity benefit is paid out in a lump sum when the policy comes to fruition.
- Refund Policy: This policy combines savings and protection. It provides lifeinsurance, but a fixed percentage of the insured amount is paid to the policyholder on a regular basis.
- Unit Linked Insurance Plan (ULIP): This is an insurance with an insurance and investment component that promises higher returns by investing in debt and equity funds. However, it is riskier than other methods as there is no guaranteed return.
Now that we’ve had a quick look at the types of life insurance, let’s take a look at the top 10 reasons why you need life insurance.
Reduce premiums and expand coverage
By investing early, you can get a higher sum insured at a significantly lower premium. This is often not possible with other forms of investment.
Guaranteed Sum Insured
Life insurance provides a guaranteed payment in the amount insured to the policyholder’s nominee in the event of an early death of the insured. This will allow your loved ones to access immediate funds. This is not possible with other types of investment options as it can take time to liquidate your funds. In addition, there is no money guarantee for the market-linked plan. This makes lifeinsurance a safe and stable investment.
Life insurance plans help build wealth as you can invest part of your premiums paid in various funds managed by experienced fund managers to get the maximum return on your investment. . This will provide a corpus at the end of the contract period.
Tax savings in accordance with § 80 D EStG. In addition, the expiry money paid at the end of the contract period (excluding term insurance) is tax exempt. However, tax laws can change over time.
Better Retirement Planning
Investing in lifeinsurance with a savings and maturity benefit component can help you plan for your retirement. At the end of the term of the contract, you will receive capital to help you remain financially independent after retirement.
Fulfill Long Term Goals
Depending on your plans, you can make small investments that help you buy a house or start your own business.
It’s a Savings Tool
As disposable income increases, many people lose their savings due to the urge to shop. Lifeinsurance acts as a savings tool, with premiums paid towards long-term wealth accumulation and keeping you financially stable.
They can be Customized
Life insurance plans can be tailored to your individual needs. Also, it provides policyholders and their dependents with a much better safety net in the event of a medical problem or serious illness.
Acts a Financial Safety Net
If the policyholder dies while the policy is still in force, the survivor will be provided with a lump-sum payment, providing a much-needed financial safety net.
Peace of Mind
There is no safer investment than life insurance. The insurance amount guarantee is paid to the family in the event of premature death, and if the insured survives to the end of the term, the prospect of wealth accumulation at the end of the term is unique.
We have several plans designed to meet your individual needs, helping you build a wealth and financial safety net for your family at affordable premiums. Now you know why it’s important to have insurance.