Life is filled with several uncertainties and challenges that are capable of disturbing the equilibrium of one’s plans. Therefore, it is important to be prepared for any uncertain events, particularly if you have people dependent on you. If you are the sole breadwinner of your family or one of the earning members, you are bound to have many financial obligations.
Hence you must consider investing in a savings plan with life cover that will provide you with the dual benefits of insurance as well as investment.
What is Life Insurance?
Life insurance is a contract between an insurance company and an individual in which the former pays the beneficiary, usually dependents of the policyholder, the sum assured under the policy on the death of the policyholder. Life insurance serves the main goal of security to the dependents in the event of the unfortunate or unexpected demise of the primary earning member of the family.
The insurance agreement is based on a premium amount that is paid at a frequency preferred by the policyholder. Besides a basic term life insurance policy, there are different types of insurance plans which offer life cover as well as a savings plan to safeguard the future of your family.
You can select from a range of life insurance policies and purchase or renew them online. In this context, most of the insurance companies in India offer their products online, including Tata AIA Life Insurance. It is safe and easy to carry out the purchase of your Tata AIA life insurance plan; all you need to do is visit their website, choose the adequate savings scheme, and buy the policy.
Benefits of Life Insurance for Your Family
It is important to purchase a life insurance policy for your family’s financial safety in the future. In the event of your death, your family will be faced with emotional trauma as well as financial constraints. The sudden lack of a regular stream of income is likely to put substantial strain on your family’s finances. Therefore, you must purchase a comprehensive life insurance plan that combines the elements of life cover and savings for financial stability.
There are several reasons why a life insurance policy is important for your family, some of which have been discussed below.
- Safety net against future uncertainties
A life insurance policy serves as a safety net for your family against any adverse events in the future. In the event of your death, your nominee shall be entitled to receive the sum assured in the policy, thereby providing them financial support during a difficult time. Furthermore, several savings plans also offer you the opportunity to opt for policy payout in the form of a steady monthly income for your family members.
- Inclusion of spouse in the life insurance cover
Several life insurance plans allow the policyholder to include their spouse in the plan, thereby providing the latter with the option to continue the plan after the primary policyholder’s death as well as receive the settlement amount from the policy as a lump sum or in instalments.
- Safeguarding your children’s future
Another important benefit of investing in a family life insurance plan is that it enables you to save consistently for the education of your children. By contributing to a guaranteed returns plan, you can be sure that when you need funds to pay for your child’s education, you have a substantial corpus available.
- Tax benefits
All life insurance plans provide the policyholder tax relief, thereby increasing the income at their disposal and allowing them to invest it further. Therefore, a life insurance policy provides you with the benefits of tax relief, insurance, and a safe investment for your savings.
There is a wide selection of life insurance plans you can choose from. It is important to note that the amount of the premium depends on your age, the tenure of the policy, and the amount of life cover. Therefore, you must compare several savings plans and select the one in alignment with your financial capabilities and financial goals. Furthermore, you must ensure that the selected plan offers adequate protection to your family.