We all know the past two has been a dramatic change in the way we see life. With so much of ups & downs we are forced to adapt to the new reality of life. With all the virtual meetings & work from home things most of us don’t want to get back to the new normal now. With this there is much pressure on investing your money for your life insurance. i came across a lot of insurance demand and people asking the best insurance to invest in and its benefits, Am sharing some of my thought on insurance and its benefits so that it may be helpful for your queries. Above all from this pandemic i think most of us have understood that there is nothing above health for a normal human. While most of us thought insurance is an added expenses during these tuff times but, End of the day that is what we want for now. Be it Life insurance, Car Insurance, Home Insurance or any of your insurance, This pandemic has made us to think twice before investing. There is a major shift in the consumer mindset post pandemic as most of us are now a little touchy towards our family health and hence considering investing in life insurance.
So what is life insurance policy- The insurance policy is the contract between and insurance provider & an individual. And as per the agreement made by the contract the policy holder pay a certain amount as the policy premium while the insurer pays a specific amount o their family on untimely demise of life insured. Millions of people buy life insurance for reasons that are often difficult to put into words. It is necessary for a breadwinner to make sure his family is in safe hands in case of their unfortunate untimely demise, There is a long list of other benefits that makes it must haves.
A life insurance helps you safe guard the financial interest of your family when you are not around.
There is a saying “It is during our darkest moments that we must focus to see the light.” Thus, the pandemic has also proven to be opportune for customers to choose the right life insurance plan. So, you may be wondering there are a lot of life insurance company’s coming up with different investment policy’s and you may which is the best one to invest?. According to me among several insurance policy, Term insurance is the most cost-effective plan one can avail. Term plans charge a fixed premium for the policy period and do not offer any added bonuses or maturity benefits in case the insured outlives the term assured. The premium rate of this is very low when compared to other insurance policy’s.
Choose Wisely – It is always beneficial to start young and plan your investments according to your financial goals. You should plan your insurance based on specific needs and your spending capacity and finances available. Therefore you can invest in both Saving/Investment plan & term insurance s the former provides investment returns along with life protection while the latter ensures you secure the financial future of your dependents at a nominal premium. Life insurance plans primarily differ in terms of price and features.
Insurance Policy Can Act As A Loan Collateral – Am pretty sure many of your dint know about life insurance can be also used as a loan collateral. Based on the type of insurance policy you have and the surrender value, the policy holder can opt for a loan in the bank or NBFC as per the terms and conditions. There are a few company’s who allow loan upto 50% of the total premium amount paid by the policy holder.
Online Payment Discount – Most individuals are unaware of the online payment benefits. This is because there is no paper work cost involved & also,the life insurer is able to save significant amount on the commission, which they pay to the agents for offline life insurance renew policy’s.
Take Care Of Business – There are some insurance policy’s that provides an option to the policy holders who own a personal business. Their business partners can purchase the policyholder’s share without any hassles. In this, The business partner simply have to sign an agreement.
With the pandemic hitting very hard in the unpredicted second wave, Though many of are having a tight in our pockets, Life insurance can still be a wise way of investment for each and everyone of us.