With changing needs, the financial aspect cannot be considered absolute with any insurance policy. There is no arguing with the fact that life and disability insurance are very much important in planning for contingencies and at the same time, helps to provide for dependents and to ensure your financial objectives will be achieved.
In today’s competitive world, life insurance helps in fulfilling many needs. One of the primary needs is to safeguard the financial well-being of your survivors by maintaining their existing lifestyle even after your death. In addition, it helps to provide a tax-free lump-sum benefit that can easily be invested in order to provide financial help for dependent children or spouse. The portion of a death can help a lot paying off debts and other dues. This will help eliminate the need for survivors to meet the schedules of repayment. That’s the reason, people tend to look for the best buy insurance they can avail.
Types of Life Insurance
- Endowment Policy: With such policies, there are savings linked. They usually come with a particular maturity period which is totally decided by the insurer. In case of any tragic event like the disability or death during the policy tenure, the sum will be assured by the beneficiaries mentioned in the policy. On the contrary, if the insured survives the term of the policy, the agreed maturity benefits become payable.
2. Term Insurance: Talking about term insurance, it offers coverage only for a particular time period. In the case of disability or death during the policy tenure, the beneficiaries will be paid all the benefits in order to fulfill the unpaid debt or loss of income. This is one of the best buy insurance you should go for. However, disability can be complete or partial, which is totally depends on the plan type you take. Most importantly, no such benefits are paid, in case if the insured survives the term of the plan.
3. Whole Life Insurance: Unlike a term insurance policy, this type of life insurance plans to give you protection till you are alive. In addition, such cover comes with death benefits, which clearly means that your family can continue to be financially stable even when you pass away. After the expiry of the term, it also comes with maturity benefits. It has been observed that most people use this type of policy in order to create an inheritance or estate for their children.
4. Children Policy: Talking about this type of insurance, these plans can be taken in the name of your beloved child or the parent. However, as a whole, it is only for the benefit of the child. Coming to its benefits, it helps parents to mobilize finances when their child reaches a specific age.
5. Annuity Plan: Like a term insurance policy, this type of insurance aims at covering income loss. After retirement, a person is removed from a regular source of income, and other forms of special perks like provident funds or gratuity. A pension is a prominent medium for safe-guarding retirement, as the benefit is much more regular income. In order to ensure financial independence after retirement, it is best to get pension plans which will help you in the near future.