Life insurance - A guaranteed way to certain an uncertain life
It is a wonderful creation of today's economist or finance management persons to solve unfortunate situations.
Basically it is a contract between a policy holder and the company, where the company promises to pay a fixed sum of money (benefits) upon the death of the insured person. Depending on the contract, like in the event of such terminal or critical illness may also access payment. There are also some combined profit as well as insurance coverage planning we have.
Some BASIC points we should focus while planning:
Why I need this?
It is true that nobody or nothing can replace your position in your family at the same time to face any unfortunate situation by your dependants A LIFE INSURANCE can release your financial duties very well. In other words it is the easiest way to make your life risk free.
What are the benefits with insurance Vs investment?
For a better future a person can opt for insurance, which is the best way to enjoy tax deductions on income tax and wealth tax (as per the condition of the company policy). As well as you can avail some benefits (certain amount depending upon the policy plan).
So the key factors are:
- Mentally free
- Getting monetary benefits
- Tax benefits
There are also some TECHNICAL points, on which you must clear.
What choice we have on Life Insurance Policy?
There are two open choices we have: Whole life and term life insurance
1. ULIP : It stands for Unit linked insurance plan (ULIP) It is a perfect combination of desired financial solution with the safety of insurance protection .It can raise wealth creation opportunities. In ULIPs, the insurer will dissect your amount. A part of that investment will goes to provide you life coverage, and the inhabitant portion of the ULIP is invested in stocks or bonds for wealth creation; the value of investments differs with the performance of your underlying fund opted by you (the amount and other important factors).
With 100% transparency the dissection of the ULIPs amount will distinguish between the protection element and the savings element depending on your needs can be managed in ULIP plan.
2. Term life insurance: It is least expensive way to get/purchase any death benefit insurance plan. By its name it is quite clear that it will last for a limited period of time with a fixed rate of payment according to the term. If the policy holder dies during the term, the death benefit will be paid to the breadwinner.
What are the important steps to calculate the amount you need to plan?
It is a major issue to calculate the amount, but unfortunately we don’t have any fixed slab for this as circumstances differs from person to person, however there are few steps if you follow, you can reach to the answer.
- The kind of lifestyle you are leading
- The amount you can debt for this reason from your salary.
- What kind of responsibility you expect (like marriage, study, etc.)
- No. of family member or dependents you have (age is the most important factor)
The only thing you need to do is to put the first step, then the way will be easier by the experts.
Basically it is a contract between a policy holder and the company, where the company promises to pay a fixed sum of money (benefits) upon the death of the insured person. Depending on the contract, like in the event of such terminal or critical illness may also access payment. There are also some combined profit as well as insurance coverage planning we have.
Some BASIC points we should focus while planning:
Why I need this?
It is true that nobody or nothing can replace your position in your family at the same time to face any unfortunate situation by your dependants A LIFE INSURANCE can release your financial duties very well. In other words it is the easiest way to make your life risk free.
What are the benefits with insurance Vs investment?
For a better future a person can opt for insurance, which is the best way to enjoy tax deductions on income tax and wealth tax (as per the condition of the company policy). As well as you can avail some benefits (certain amount depending upon the policy plan).
So the key factors are:
- Mentally free
- Getting monetary benefits
- Tax benefits
There are also some TECHNICAL points, on which you must clear.
What choice we have on Life Insurance Policy?
There are two open choices we have: Whole life and term life insurance
1. ULIP : It stands for Unit linked insurance plan (ULIP) It is a perfect combination of desired financial solution with the safety of insurance protection .It can raise wealth creation opportunities. In ULIPs, the insurer will dissect your amount. A part of that investment will goes to provide you life coverage, and the inhabitant portion of the ULIP is invested in stocks or bonds for wealth creation; the value of investments differs with the performance of your underlying fund opted by you (the amount and other important factors).
With 100% transparency the dissection of the ULIPs amount will distinguish between the protection element and the savings element depending on your needs can be managed in ULIP plan.
2. Term life insurance: It is least expensive way to get/purchase any death benefit insurance plan. By its name it is quite clear that it will last for a limited period of time with a fixed rate of payment according to the term. If the policy holder dies during the term, the death benefit will be paid to the breadwinner.
What are the important steps to calculate the amount you need to plan?
It is a major issue to calculate the amount, but unfortunately we don’t have any fixed slab for this as circumstances differs from person to person, however there are few steps if you follow, you can reach to the answer.
- The kind of lifestyle you are leading
- The amount you can debt for this reason from your salary.
- What kind of responsibility you expect (like marriage, study, etc.)
- No. of family member or dependents you have (age is the most important factor)
The only thing you need to do is to put the first step, then the way will be easier by the experts.
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