8 Reasons why you need to buy a Life Insurance policy

The term “Life Insurance” is known to almost everyone in India. Due to the increased scope of digitization, the availability of online insurance policy and increasing benefits, you can easily compare insurance policies and buy the best one for you. But still with so much awareness and improvements, very few people go for a life insurance policy. The main reason behind this is that most of the people don’t understand the importance of life insurance. They don’t know why to buy a life insurance.

A life insurance can prove to be the best decision which you have taken towards making your life and those of loved ones, financially protected and stable. Not only for people with family, but it is very much important for those young people also who are concerned about the future and want it to be safe and secure.

 Before buying a life insurance, you need to understand its importance in your life and through this article, we will try to understand the basic 8 reason for buying a life insurance plan:-

Protect your loved ones

Everyone works hard to give the best life to their loved ones.  They want their children to read in the best school or college,  save money for getting their child married in the best way possible, but what if one day, due to an unfortunate event, you are no longer for them. All your care and love will get overcast by the financial crisis and an uncertain future. Your children might have to leave studies and start working. Yes, this sounds like a nightmare, but you can avoid all this by taking a life insurance policy, because life insurance covers the risk of death and provides financial protection for your family. Life insurance can act as regular income for your family if you die.

Cover risk against Debt

Debt, during your life is a huge responsibility for you and unpaid debts after your life becomes a burden for your dependents.  Life insurance plays a key role in paying your debts by your dependents even if you are not there for them. By claiming the sum assured, your dependents have to not worry about the loans which you have taken and it can be paid easily.

Investment with low risk

Everyone invests and expect a maximum return out of the money spent with low risk. But the main problem arises when you think upon deciding the form of investment. Life insurance is a secure option for investment as the sum assured keeps on increasing with bonus, linked companies fund (if opted). It is a risk free option to invest which provide guaranteed returns along with risk cover.

Helping hand during illness

During illness, everyone needs a helping hand, in the form of both financial and physical. While being surrounded by your loved ones, the only form you have to worry about is financial. An illness doesn’t only break you physically, but financially also. A life insurance can provide you with required financial help during your illness to cover, loss of income, bills of hospitalization etc.

Retirement plan

Needs never stop, even after your retirement and to fulfill your needs you require a retirement plan.  With all other benefits, Life insurance can be your best retirement plan because it provides regular income after your retirement.

Acts as a Collateral

Life insurance is like an asset. It can be used to as a collateral to secure a loan. Loan is required at crucial steps of your life, like starting a new business or buying a home and the main issue which arises while taking a loan is your credibility. A life insurance policy increases your credibility for getting a loan. Different life insurance policies have different limit of loan which you can take against it and it will not affect your insurance policy anyway.

Peace of Mind
Everyone needs peace of mind and it is snatched by future worries. The Life insurance Policy provides you the peace of mind for the future.

Tax benefit

A tax rebate is everybody’s wish and it can be completed by Life insurance policy. Premiums paid and the amount received on maturity or death is tax deductible under section 80C and 10 (10 D) of the Income Tax act 1961.

Conclusion

A peace of mind with financial stability for present and future is what everybody wishes for and Life insurance policy provides you with the same.  You can compare and choose from the best life insurance policies in India. Protection for loved ones with a lot of benefits is what a life insurance policy offers you and these features properly justifies the reason to buy life insurance.

Tips on How to Buy the Right Health Insurance Policy

Health Insurance sector in India has shown growth in the recent years, but still less than 20% people are covered under a health insurance policy and the majority of those who are covered under different health insurance plans in India are either government employees or consider health insurance as only a tax saving tool. Going for a health insurance policy is a good decision, but going for a health insurance plan which suits your need is the best decision. With the increasing standardization and government initiative in health insurance sector, now you have the option to choose the best health insurance policy through which you can get maximum benefit and security.

 Choosing a health insurance plan should depend on your condition and requirement. The best health insurance plan suggested by your friend because he bought it can result in providing zero benefit when you need.     

  

Here are some of the tips, based on which you can choose the best health insurance plan-

Required coverage

A good health insurance plan is the one which has the right amount of coverage based on medical condition, requirements and rise in the price of health care. A high coverage amount will end up with out of budget premiums while a low coverage will end up no benefit when required.

Fixed or indemnity Based Plan

There are basically two types of health care plans in India, Indemnity plan and Fixed benefit hospital plans like Critical illness plan which gives you a fixed sum assured if diagnosed with a particular disease mentioned in the policy. It is better for people who have a family history of a particular disease like kidney failure, heart attack, cancer, etc., which requires long medical treatment with high cost. It is also beneficial for people who don’t want a limit on their medical treatment expense of a particular disease. On other hand, Indemnity plan covers hospital cost which includes cashless payment or reimbursement after submission of proper bills. Indemnity plan insures the hospital cost regardless of the type of diseases.

 Co-Pay

There is a clause of Co-pay in Health Insurance Policy under which a percentage of the total medical expense has to be paid by the insured person. For example, if your medical expense comes out to be Rs.10,000 and your Co-pay percentage is 10%”, then you have to pay Rs.1,000 from your own pocket and the rest Rs.9,000 will be paid by the insurance company. It is beneficial for people who are healthy and require fewer visits to the hospital as with Co-pay you get discounts on the premium paid.

Cover your whole family

A family floater plan helps you to cover the whole family under one plan and the amount under your insurance plan can be used by a single member of the family. You need to check whether your policy is providing a family floater or not. It is best for people who want to cover their whole family in a single plan.

 Check the Sub Limits

Checking Sub-limit in your health insurance policy is very much necessary. Sub limit is the limit on your coverage benefit or amount which puts a restriction on the payout under a health plan. There are sub limit on room rent or specific treatment. Before buying a health insurance policy, you must check the amount of sub limit, on which parts of medical expense it is applicable and whether you want it or not.

Restore Benefit

 A restore benefit, as the name suggests, helps you to restore the amount of coverage if you have already exhausted the sum assured during the policy. Like if you have exhausted 3 lakhs coverage in a policy year and, you need some medical attention again, then the coverage will be restored if it has this benefit. Check for restore benefit before buying a health insurance policy.

Before buying a health insurance policy always analyze your condition, requirements, benefits which you need and never forget to read the fine clauses mentioned in your health insurance policy to avoid any bad surprise at the time of claim.