In this age, where disasters and diseases are striking at the world at a variable frequency, it becomes increasingly important to ensure that not only ourselves but our loved ones are safe, too, physically and financially. And there is no other better way to do this than by securing a life insurance policy for ourselves. That is the meaning of sabse pehle life insurance.
What is a life insurance policy?
This agreement makes a promise to the policyholder that he or she or his/her nominees will be paid an assured sum at the time the policy becomes due. The policyholder should pay the entire premium of the plan to the company before the said date. If the policyholder is still alive to receive the policy's benefit, then it is termed maturity. However, if he/she passes away during the policy's tenor, the benefit will be received by the beneficiary or nominee. Thus, it will come to be known as the death benefit.
While the company calculates the amount of premium payable based on several factors like the insured's income, job, lifestyle, gender, age, etc., decisions regarding the type of insurance plan and the mode of premium payment is taken by the insured. The holder of the policy can choose to pay the premium either in lump-sum or in installments (monthly, quarterly, half-yearly, or yearly). The latter option is often the most preferred one.
What are the various kinds of life insurance policies?
Currently, the life insurance plans offered by most of the companies can be broadly categorized into two types- term life insurance plans and whole life insurance plans
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Term life insurance plans |
Whole life insurance plans |
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Offers financial protection for only a fixed number of years ( generally between 5-50) |
Offers financial protection for the entire lifetime of the policyholder |
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More affordable than whole life insurance plans |
Comparatively more expensive than term insurance plans |
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Maturity benefit is not paid on the survival of the insured |
Maturity benefit is paid when the insured attains a certain age (typically between 80-100) |
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This plan is suitable for those who want to leave behind some financial coverage for their families after their demise without paying high premiums in the process |
This plan is suitable for those who want to not only remain financially independent even after retirement but also bequeath a legacy amount for their kin |
Why should you buy a life insurance policy?
Most of the adult population, particularly middle-aged and senior citizens, are skeptical of buying life insurance policies because they fear getting scammed in the end. However, what they fail to understand is that an insurance policy is a legally binding contract. This gives a policyholder the right to take an insurance company to court if they fail to keep up the contract's end. Life insurance policies have many other beneficial features besides this, such as:
- Tax benefits- The premium paid under the insurance policy are deductible from taxable income. Similarly, the amount received by an insured on the maturity of the policy is exempted from taxes.
- Protection cover for loved ones in your absence: Whether it is to ensure a regular source of income for your widowed partner or to meet your offspring's future expenses, life insurance policies could indefinitely serve as a lifeline for your surviving dependents.
- Aids in life stage planning: Since you are invested in policy for an extended period, it will help you accomplish your long-term goals, like buying your dream home or meeting your children's marriage expenses, through systematic life stage planning.
Thus it is explicitly undoubted that an insurance policy is an absolute necessity in this era. Not only does it minimize the risk of your loved ones facing adverse financial situations in the future due to your absence, but it also serves as a motivator for you to achieve everything that you want in life. So without further ado, get your life insured because of sabse pehle zindagi, sabse pehle life insurance!