Why is it crucial to buy a life insurance policy?

Life insurance is the safest and simplest way for a person to protect his family/dependents from financial contingencies that may occur after his untimely death.

Life insurance – A life insurance policy is an agreement between an insurance company and a policyholder, that provides financial cover under which the insurer is required to pay a designated beneficiary for a specified sum of money. In return, the policyholder promises to pay a predetermined amount of premium either regularly or as a single premium. If covered by the policy, it will also provide coverage for critical illness. It attracts a better insurance premium as it provides enriched insurance coverage. In the unfortunate event of the death of the insured, the money is given back by the insurance company to the nominee.

Who decides the premium amount of life insurance?

The insurance company will decide the premium payable by the policyholder to the insurance company. Having said the insurance buyer would be able to choose the policy term and the assured amount.

To calculate the guaranteed amount of a life insurance policy, the insurer takes into account many factors such as your lifestyle, occupation, dependents number, finances, insured amount, and so on.

What is an online life insurance plan?

As its name suggests, the online life insurance plan is available entirely online. An online life insurance plan offers guaranteed benefits in the form of a large amount at a small premium. Besides, online life insurance schemes provide several tax benefits under the 1961 Income Tax Act, Section 80C.

Why is it crucial to buy a life insurance policy?

To ensure that one’s family does not need to make any compromises due to the financial crisis, the person should purchase a suitable life coverage plan. It will help his / her family to get through difficult times with dignity. This is why it is necessary to buy a life insurance policy

Protection from unpredictability – life is unpredictable; one cannot predict when his life will end. If people are dependent on one person, no one would want to leave without ensuring the financial security of their family. Sadly, it is not up to them. To take care of the financial future of your family, a person should buy a life policy and stay one step ahead. Doing so will ensure that the financial goals set for him / her family can be met even when he is not around.

Financial support – It provides much needed financial support to the insured’s family by compensating for the financial loss.

Outstanding debt – The accidental demise of a breadwinner is nothing short of a family catastrophe. While it is an emotional crisis, it can quickly become a financial crisis. With the help of life insurance, any outstanding loan such as vehicle loan, personal loan, home loan, etc. can be taken care of.

Note: Once the insurance customer understands what they want, the next step is to compare life insurance plans that meet their insurance needs. The best policy of insurance is one that meets the requirements of the insurance buyer.

There is no premium calculator capable of calculating the value of human life.

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About the Author: Clare Louise

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