If you are the primary earner in your family, it is essential to think about investing in a life insurance policy. No one would like to plan about their death because they would be forced to think about the scenario where they would no more be around to support their loved ones. Life insurance can be explained as a contract between you and an insurance company, in which you plan to pay a premium amount monthly or yearly. In return, the company will pay a predetermined, fixed amount to your loved ones after your death.
In current times, with a global pandemic on the rise, it is necessary to invest in such a policy because there are numerous uncertainties surrounding our lives, such as accidents, mishaps, life-threatening diseases, etc. With loans, EMIs, child expenses, rents, etc. to pay, you cannot avoid planning about how finances would be managed in your house in your absence. There would be no constant source of income and your loved ones would suffer because of lack of finances. For financial protection and security, investing in a life insurance policy is critical.
Advantages Of Life Insurance
Apart from life risk cover, which will keep your family protected in case of any uncertainty, you will also get several other benefits. Those advantages are discussed below.
#1 Death Benefit
You and your family would be offered a secure future. If anything unwanted happens to you, the company will pay the entire amount to the family. You can choose to let your family obtain a lump sum amount or monthly withdrawals. In the case of monthly withdrawals, your loved ones would get monthly payments. Some policies even pay back the entire amount (death benefit) along with a bonus (maturity benefit) to the person in case the insured does not die.
#2 Affordable Premiums
If you go for term plans, you can get a huge amount insured for low premiums. Some people choose term plans if they have significant loan amounts on their heads and do not want the burden of their loans to fall on their families if they die. There are decreasing term plans too, where the premiums keep on reducing with time. As loan amounts also decrease with time, these plans are suitable for those who are seeking insurance that would pay off the loan amounts during unwanted circumstances.
#3 Suitable For All
There are various insurance plans available being offered by several insurance companies. Whether you want a plan that covers your critical illness, a plan that would not burn a hole in your pocket, a policy that would cover your loans, or a plan providing a large death benefit, you can select the kind you want. Moreover, depending on your age, health, occupation, etc., plans are even customized. So, if you do a low-risk job, do not have any illness, and are in your 20s or 30s, expect a large death benefit for a very low premium amount.
The Bottom Line The above-mentioned benefits make it crucial to have a life insurance policy in the current times. Planning for this uncertainty in advance would ensure your family does not suffer financially if you are no more alive.