Last updated on June 13th, 2021 at 02:27 pm
Life insurance is one of kind investment option. Not only does it help you build corpus in the long run to take care of your loved ones, but also is one of best tax saving options. Life insurance when done right can bring in a lot of benefits. But is everyone aware of the right, terms and conditions that it beings along?
Why is Life Insurance So Important?
Life insurance is not a single plan. There are several kinds of best life insurance plans and you need to figure out which one suits you the best. Whether you have been looking for a plan that pure insurance or one that brings along corpus with investment, it is essential that you have your priorities sorted. There are term plans, ULIPs, endowment plans, child plans, retirement plans, so on and so forth. Therefore, making a call can be tough.
It is Essential for Your Family!
Growing older, starting a family puts an additional pressure of securing your loved ones. Life insurance is one of the simplest options available in the market these days. Even if mutual funds have all the attention, the humble insurance is no way inferior. No one, be it a bank, an individual agent, or an insurance company can deny you a policy if you have any kind of disability.
Disability Should Not Stop You from Getting Insurance
Insurances are bound to cover inclusion policies. As long as the disability is not life threatening, the premiums would be charged at normal rates instead of an in-exorbitant amount. This premium is payable to you if your death isn’t related to your disability in any case.
Group Insurances Require You Be Employed with the Company until the End
Group insurances made available through various organisations can help you stay protected and covered for a long time. However, the term requires that you be an employee of the firm until your death to ensure claiming the benefits.
Identify Your Rights
Purchasing a policy is not everything that is meant for a life insurance plan. You need to identify your rights before, during and after the policy purchase. Your rights pertaining to claiming death benefits and maturity might vary. It only makes more sense that you are aware of the entire process instead of blindly signing those dotted lines.
Analysing tax benefits is not everything. Given that life insurance qualifies for tax rebates under 80C, it is a common mistake to make conclusions based on investment amount alone. However, as a precautionary measure, you should always question the strength and background of the organisation you intend to buy a policy from. If the company is not considerate about your privacy or that of the policy, it is a red flag that you should watch out for.
Services After Purchasing
In case you want to rethink your policy plans or want to revise it, your insurance company should be willing to do the same without any additional hassles. They have the right to charge a nominal fee, however, it should not be an uphill task. If at any point of time within 15 days of the policy purchase you believe that it is not useful to you, you should have the option to return it.
Rights After The Policy Completes its Lifetime
Claim settlement should not take long given that insurance is all about settling them as soon as possible. Within 15 days of claim, the insurance company is obligated to communicate all information and documents that might be needed for it to fix it and process it at the earliest. In case of delay the insurance becomes liable to pay the claim amount with penalty and interest on it. Nevertheless, the payment should be made available to the policy nominee within 30 days of the claim initiation.
Being Prepared Helps
Life is uncertain and it keeps getting as such with every passing day. Life insurances bank on uncertainty for their customer base and grow accordingly. A life insurance premium might seem as a short term burden, but it is one of the most fruitful investments that one can choose.
Not only your life, but insurance can be purchased for your business also. Guard your income against frauds and losses as your buy an extra protection for yourself.
Tragedy, death, and losses are uncertain, hence unavoidable. Being prepared for it gives you a peace of mind like no other and spending a couple of hundreds each month helps you attain the same for a long time. You can be assured of the fact that after you, your family would not have to face any disgrace because of any debts or issues whatsoever. They will be protected and guarded against every possible liability such as education, marriage, so on and so forth. Therefore, always make an informed decision while making a policy purchase.