The thought of your child’s happy face or the thought of entering your home to be greeted by your loved ones fills your heart with great joy and contentment. However, the thought of what the same family members would go through if you died unexpectedly can be terrifying.
While an individual cannot be replaced, his or her income, which once supported the family, can. This is what makes life insurance plans such a fantastic financial product. It protects a person’s family financially in the event of his or her death. A life insurance plan will do what the person who provides for his or her family would have done if he or she were still alive.
Given the significance of a life insurance plan that protects the family’s financial security, it is critical to do some basic research to ensure that we understand how life insurance plans work.
What is a Life Insurance Plan?
A life insurance plan is a contract between a policyholder and an insurance company. In exchange for regular payments of fixed amounts of money, the company promises to pay a certain amount of money upon the death of the individual as decided at the start of the policy. The sum assured is the amount that the insurer promises to provide, and the premium is the amount paid to the insurer regularly.
Policies for life insurance can be purchased both online and offline. Insurance agents will assist individuals in obtaining the best life insurance policies so that they can make the best decisions. Many insurers provide special online insurance products that can be purchased with a few clicks through their official website.
Some of the best life insurance policies are also available online through a variety of third-party websites. It is critical to shop around for the insurer who provides the best comprehensive plan at the most affordable price.
The death benefit is the amount provided to the nominee/beneficiary chosen by the policyholder upon the death of the life assured. To receive the benefit, the nominee must notify the insurer and file a claim.
Which Financial Goals Can You Secure with Life Insurance?
Knowing what a life insurance plan means and what it means to have life insurance may not be enough to understand your specific needs. Life insurance plans can help an individual and his family achieve a variety of financial goals. Some of the goals that the best life insurance policy can help an individual achieve:
- Financial security in the event of a fatality
- Child’s Education Child’s Marriage
- Buying/Owning a Home
- Pension or regular income after retirement?
These are just a few of the financial objectives that life insurance plans can help you achieve. Life insurance policies are quite adaptable. You can plan for and align your insurance to help you achieve your stated life goals.
How to Choose the Best Life Insurance Policy?
When you understand what life insurance means and recognise the need for life insurance, you should be aware of the following simple steps to selecting the best life insurance policy. Follow these steps to find the best available life insurance plans:
1. Get in Touch With An Insurance Consultant/ Provider
Although it may appear insignificant, it is critical to involve a credible and knowledgeable insurance advisor or provider when seeking life insurance at the outset. The significance of life insurance in the future of your family is significant, and thus it is a critical decision.
Many people are unlikely to make decisions on their own and will require the assistance of an insurance advisor. Consumers in the insurance industry are more likely to use digital media, but they still expect human interaction and recommendations for such important activities.
2. Evaluate The Life Insurance Cover
A life insurance provider can assist you in calculating the amount of life insurance you need (sum assured). They will also consider your source of income, the number of dependents, any liabilities, and your spending habits to recommend a suitable life insurance policy.
Life insurance plan providers can also assist you in selecting the best life insurance policy from among the various types of life insurance policies available on the market. This ensures that you understand the significance of life insurance for your family and that you receive the best possible life insurance coverage.
3. Compare Life Insurance Plans
When researching what life insurance means, you will most likely come across a plethora of insurance providers in the market who offer various types of life insurance policies. One must ensure that they carefully select the most appropriate life insurance available.
Before making any decisions, you must understand the meaning of life insurance and compare different types of life insurance policies to find the best one for your financial needs.
Best Life Insurance Plans
Here are some of the best life insurance plans available in India that offer high returns.
1. Canara HSBC Oriental Bank Of Commerce iSelect Star Term Plan
Canara HSBC Oriental Bank Of Commerce iSelect Star Term Plan is a non-linked, individual term plan that protects the insured against a variety of life’s unforeseeable events. This plan is adaptable and includes options such as Whole Life Coverage and Spouse Coverage, which can both be obtained under the same policy. Furthermore, it provides a full refund of the Canara HSBC iSelect Star Term Plan premium. It is an excellent term plan for covering the unfortunate events that may occur in one’s life.
2. IndiaFirst Life Plan
The IndiaFirst Life Plan is a non-participating term insurance policy. This protection plan offers low-cost life insurance policy coverage for up to 40 years, which helps protect the family in the event of the life insured’s death.
3. Kotak Preferred e- Term Plan
The Kotak Preferred e-Term Plan is an online-only term life insurance policy that provides a high level of protection at a low cost. In the absence of a life insurance plan, it helps to protect the family from the uncertainties of life.
The plan secures the future of the loved ones, allowing them to meet their financial obligations while living a happy life.
4. Bajaj Allianz iSecure
There are policy terms available for 10, 15, 20, 25, and 30 years. The sum guaranteed is less than Rs 20 lakh. It has options for smokers, nonsmokers, and preferred nonsmokers. You can even get discounts on premium plans, demonstrating how to drastically cut costs. Simultaneously, when purchasing an insurance policy online, you should carefully read the terms and conditions.
5. LIC e-Term
The LIC e-Term insurance plan protects your family financially in the event of an unexpected death or other issues. The enrollment age for this plan ranges from 18 to 60 years. You can apply for this coverage online to protect your family from unexpected costs. The premium rates may vary depending on the plan, and you can view the details before making a purchase online.
Wrapping It Up
If you understand what life insurance means, you must understand that while a life insurance plan may not appear to be necessary, it is a wise decision in this uncertain time. It provides financial security to your family members in the event of your untimely death. Not only that, but the life insurance definition also includes a variety of other benefits, such as tax breaks on premium payments.