Today, almost everyone has life insurance. It could be for various reasons such as investment purposes or tax benefits, but the main point is that it offers complete peace of mind. With insurance plans, one does not have to worry about the future safety of their family during their absence. These plans provide financial security to the next of kin after the death of the insured.
Insurance is a must for anyone who has financial survivors. The age range to take out insurance is approximately between 18 and 75 years. Most banks have a minimum and a maximum amount to be insured.
Types of life insurance plans
Broadly speaking, the two main types of insurance policies are term life insurance and life insurance. Term life insurance is the most basic and simplest of plans. These plans only cover risks for a short period of time. At the end of the term, you can extend the plan, but there is a good chance that the premiums will increase. These plans are economic.
On the other hand, whole life insurance policies are expensive, but these policies continue as long as the insured lives. These plans are sometimes treated as investment options because one does not receive any money until the death of the insured.
Other plans include life insurance plans that offer great investment opportunities along with financial security. Usually one has to pay two separate premiums – one for the life insurance and one for the investment. These plans are beneficial as they provide financial solutions to your family members both during your lifetime and after your lifetime.
There are also pension schemes for seniors. Insurance policies are extremely important for such people as these plans provide security and freedom to the surviving spouse. Child plans are another choice in insurance plans. These policies provide financial support for your child’s education, marriage, etc. Another option is health insurance. Health insurance policies provide coverage for medical costs. These plans are suitable for people suffering from health problems like diabetes, cancer, etc.
Riders in life insurance
Riders are the extra benefits that one can add to their life insurance policies. However, the premium amount increases with the inclusion of these riders. There are different types of riders in insurance plans offered by banks. The most popular of all are:
Critical Illness Benefit Rider: It provides financial assistance in the event that the insured is diagnosed with critical illnesses such as cancer, heart attacks, kidney failure, etc. Accidental Death and Disability Benefit Rider: In the event that the insured becomes incapacitated after an accident, this rider this risk.
Tax benefits under the Income Tax Act 1961 provide a deduction in premium amounts, investments, dividends, etc. However, these benefits are subject to change on a regular basis.
These plans protect the needs and requirements of your loved ones in case of unfortunate events. It helps keep your family safe even when you are not around.