Life insurance

Life is as priceless as it gets. No amount of money or royalties can offer to replace the value of one's living presence. Having said that, some monetary provisions are available to keep one's legacy safe and sound. These are known as life insurance. Let us learn about these plans in more detail to understand and know about this form of life protection. 

What is life insurance?

A life insurance policy is a legal contract between a provider and an insurer that guarantees monetary advantages to the beneficiary. The policyholder must pay premiums regularly to avail of the policy's perks. In exchange for these payments, an insurer is offered comprehensive life cover. 

Under the policy's cover, your loved ones are offered a lumpsum as compensation in unfortunate events such as untimely loss of life. In case death occurs after your insurance policy's term ends, you are eligible to receive maturity benefits. 

Regardless of your life events, having a life insurance policy in place can offer numerous advantages safeguarding the well-being and care of you and your loved ones.  

Types of Life Insurance 

No two people lead the same life. Everyone has different circumstances which alter the course of one's decisions. Providers have devised various life insurance schemes to accommodate these diversities and be inclusive. This section will take a detailed look into the highlighting features, pros, and cons of each type of life insurance policy. We will also look into which plan is best suitable for which category of people. 

Features 

Many terms and policies within life insurance may seem alien or unfamiliar to laypeople. When you go on to buy a policy, it is vital to acquaint yourself with these terms, as they are the central highlighting features of any policy. Some of them are as follows. 

• Policyholder 

The individual purchasing or owning the insurance plan is known as the policyholder. They can avail all the inclusive advantages of a plan. 

• Premium 

The amount of money paid to an insurance provider company for availing a plan. A premium can be paid in lumpsum or over a pre-determined period. 

• Maturity benefits 

Upon the expiry of insurance, the policy provider may offer special bonuses and perks to the holders. These benefits are offered as a payback for your investment over the years. 

• Entry age 

As you may be able to guess from the name, it is the age during which one enters their policy clause. There is no limit to what this age can be. However, bagging in a policy as soon as possible is recommended for maximum benefits. 

• Nominee 

A nominee is a person the policyholder chooses to receive the insurance benefits per your plan's conditions. It can be any of your loved ones, including your spouse, child, parent, or sibling.  

• Surrender value 

You are entitled to some benefits if you wish to terminate or surrender your policy before its tenure. All these benefits come under the definition of "surrender value." 

• Riders

Each policy has the provision of additional benefits at an extra cost. These benefits, known as riders, offer more flexibility and advantages to policy owners.   

• Free-look period

A free-look period is a "trial period" wherein a person can assess and verify whether a policy suits them. It can last anywhere between 10-30 days. 

All these terms and definitions make up the core of any effective policy scheme. You must clearly understand what they mean to choose a suitable plan.  

Benefits 

Life insurance is one of the most recommended and crucial policies for various reasons. Some of the highlighting benefits are said to be as follows. 

• You are offered a financial security net to keep you and your loved ones safe through life's difficulties.

• In the event of someone's unfortunate demise, the sum assured from their policy acts as a replacement income.

• You can enhance the quality of your life's protection by opting for additional rider provisions at a flexible cost.

• A policy nominee can enjoy various tax benefits from the policy after claiming the sum assured. 

• With insurance in place, you can plan out your life's financial structure and keep yourself safeguarded against unanticipated financial emergencies.

• The policyholder's economic growth is a powerful boost through guaranteed annuities and dividends.

• Applying and repaying for loans becomes hassle-free when done through insurance money.

• The sooner you purchase your insurance plan, the more secure and fruitful your policy's clauses become. 

These are just some top-rated advantages of securing yourself through life insurance. You may find more perks in your respective policy against with context to your specific demographics. 

Factors that affect your life insurance 

The pricing of an insurance policy's premium is based on the accumulation of various life aspects. These considerations are crucial for assessing and evaluating the worth of your plan. Let us closely examine these factors and why they influence one's insurance premiums. 

• Age 

Getting a policy as soon as one legally can is advisable to reap the finest benefits of insurance. Younger people have a longer life expectancy and lower vulnerability to illnesses. Hence, the premium can go lower for younger policyholders. 

• Gender 

There is a statistical tendency for women to have a longer life expectancy than men. This factor may also lower the costs of premiums for female applicants. 

• Lifestyle

If you seek thrill in adventurous activities, you may have to pay a higher premium. The reason behind this reasoning is the constant exposure to risk, which has a direct impact on your life insurance. 

• Health record

Your provider must have a clear idea about your health condition. Doing so helps them determine whether or not any severe illnesses will impact your policy. 

• Family medical history 

Like health records, any genetic predisposition to life-threatening diseases is essential information your provider must know. 

• Intoxication habits 

People who regularly smoke or drink may have to pay as much as a double premium rate. Insurance providers consider intoxication habits a significant red flag and charge heavily to those doing it. 

Life insurance plans comparison across insurers This is very critical (we should take an example of 35 years age and compare the premium and other terms and condition across providers. Please note Riders and term and conditions are very critical from insurance perspective 

Why is it a good idea to consult with Credvisors before buying any insurance policy online or offline? 

Endless banks and financial institutions have their insurance policy plans with varying offers and terms. While all of these plans are marketed as the "best" in their own ways, staying mindful of your choices is important. What may be the "best" choice for someone else may not be the most suitable for you. 

If you want to ease this overwhelm and make wise investment choices, consider speaking to our Credvisors. We are a team of experienced and certified professional financial experts available to assist clients with their investment decisions. With us by your side, you can be guaranteed to receive help in the following ways. 

• Matching you with suitable plan providers 
• Getting instant quotes from your preferred providers 
• At-home documentation and consultation 
• Negotiating from your end to bag the best deals 
• Providing personalised financial advice for interest rates, tax benefits, scheme selection etc. 

You are just one call away from getting the help you deserve! Reach out to our Credvisors today to learn more information.