First things first, do you have a Life Insurance cover? If your answer is yes, great! In case it’s a no, you sure need to get one now. Why? Don’t worry. We know you don’t like doing things without a valid reason/explanation. That’s why we have put together a list of reasons that should be enough to encourage you to explore the internet right now and get a Life Insurance policy for yourself.
Don’t confuse Life Insurance with Health Insurance. While a Medical Insurance plan takes care of medical expenses during an unforseen emergency, a Life Insurance policy basically ensures the security of those dependent on the policyholder (financially) by providing them with an assured sum of money in case of the policy holder’s demise.
Additional Reading: Your Guide To Joint Life Insurance
Here are the top reasons you need a Life Insurance cover:
Your Family Is Financially Dependent On You
If you are the sole breadwinner in your family, you need to ensure that their needs are taken care of should you expire. Ensuring the financial security of your family is one of your foremost responsibilities, isn’t it? Getting a Life Insurance cover is the best way to ensure the financial stability of your family, even after you’re gone.
Help With The Loans
If you’ve taken a joint loan with any of your family members and something happens to you, they’ll have to shoulder the entire responsibility alone. Don’t let that happen. Taking a Life Insurance by making them the nominee can help. In case of your demise, they can use the insurance money to pay the loan off. Apart from using your Life Insurance policy to pay off the loans, you can also draw a loan against it. How cool is that!
A Great Investment Option
There’s so much more to a Life Insurance policy than merely being a financial cover for your dependents. It can also act as an investment option. There are a wide variety of policies/plans to choose from. You can explore the market and get one according to your needs and preferences. For instance, child plans, retirement plans, etc.
Cover For Illness & Accidents
A Life Insurance policy can help cover all the expenses that can be caused by a serious accident or illness. No matter how healthy you are, an illness or accident could happen anytime. Instead of taking it lightly, it’s better you plan ahead. Using a Life Insurance policy to pay for your medical expenses is far better than borrowing money from friends and family.
Freedom From Tax
If you’ve been looking for a great way to save on taxes, a Life Insurance policy can come in handy. You can avail tax benefits on your premium payments under Section 80C of the IT Act.
Now that you know the benefits of a Life Insurance policy and why you need one, what are you waiting for? Oh! You’re probably wondering which one to pick. Don’t worry, we have that sorted for you as well.
How did we classify them? The most important aspects of a Life Insurance plan that you should look for are the features and benefits. So, here are some Life Insurance plans for 2017 that have some pretty nifty features and benefits:
A Term Insurance plan that provides you protection and cover from every uncertainty of life. It has four cover options:
- Life Option – Lump sum payout of death benefit
- Extra Life Option (Accidental Death Benefit) – Apart from getting the lump sum payout of death benefit, it also gives an extra sum assured in case of death due to accident.
- Income Option – Part of the sum assured is payable on death and the remaining payable as monthly income for 15 years
- Income Plus Option – Sum Assured paid on death & monthly income paid for next 10 years. The monthly Income can be chosen as Level or increasing at 10% p.a.
A Term Life plan that offers customisable protection and options to choose from different payout options.
- Full Lump Sum Payout
- Payout As Lump Sum + Regular Monthly Income
- Payout As Lump Sum + Increasing Monthly Income
- Payout As Lump Sum + Regular Monthly Income Till Child Turns 21
It’s an online unit-linked plan that can offer the benefits of wealth maximisation and insurance coverage, together. It gives you three payout options:
- Limited Pay
- Single Pay
- Regular Pay
It’s a Term Insurance plan that provides you with cost-effective online protection. You can get a life cover until the age of 80 years. With an inbuilt terminal illness benefit, it also gives you the option to increase your life coverage as per your changing requirements.
It’s a guaranteed return endowment plan that gives you a bonus facility. What’s this bonus? Once your policy matures, you not only get the sum assured, but you also get a simple reversionary bonus plus final addition bonus.
It’s a non-linked, profit endowment plan that gives you an option of whole life coverage. You get the option to choose between single or regular premium payments. Want some additional riders? Don’t worry. You can get them at an affordable cost. Here are the three main riders you can get:
- SBI Life – Preferred Term Rider
- SBI Life – Accidental Death Benefit Rider
- SBI Life – Accidental Total and Permanent Disability Benefit Rider
There are two types of pension plans that you can choose from—individual and non-linked traditional participating. You get to choose the policy term anywhere between 5 to 75 years. This is an insurance cum pension plan that offers a guaranteed bonus.
It’s an insurance policy that also offers the benefits of a pension plan. You get to choose the frequency of premium payments and keep it either yearly, half-yearly, quarterly or monthly. The only drawback, however, is that you can’t avail a loan against this policy.
It’s a Unit Linked Insurance plan that allows you to save and stay protected at the same time. You get to choose from multiple fund options and also avail tax benefits. It’s a single premium payment policy.
It’s a money back insurance policy that offers benefits like shorter premium payment terms, special rates for female policyholders, a choice of up to four policy terms, etc.
Phew! Quite a long list, we know. But we all need tons of choices to choose the best? So, take all your needs and requirements into consideration and choose the one that suits you the best.