Advantages of Life Insurance
A wide range of vehicles are accessible to fund future financial objectives. These could be low risk-low return instruments like bank deposits and small savings, or higher risk items such as equity, which can offer potentially higher returns. Insurance scores over other investment vehicles in a of aspects. Life Insurance companies in Mumbai provide best finance services
Life Insurance for Future Goal Planning
Certainty
Once a objective has been distinguished and a value for it has been crystallized, an insurance policy is a great way to fund the objective. This is because one can be rest assured that even in the disastrous event of death or even critical condition, the sum assured will fund a future objective of the policy holder.
Tax efficient
Maturity advantages of many insurance policies are income tax free under section 10 (10D) and the premium paid is eligible for deduction under section 80C of the income tax Act, 1961.
Flexibility
Insurance products, especially unit linked plans, provide flexibility in terms of asset allocation to suit specific risk appetities, policy durations, premium payment terms and fund switching alternative.
Wider options
Depending on the time horizon of the objective, the return required and the financial specialist's risk appetite, a broad spectrum of asset allocations between equity and debt is possible in a Unit Linked Plan. A financial specialist may tailor his strategy to suit his requirement.
Liquidity
Most Insurance items offer great liquidity after the secure period to deal with any crisis necessity of assets. But they do have inherent deterrents in the form of demoralize to discourage unnecessary encashment.
Earmarking
Very often an insurance policy is taken for a particular objective. This therefore can become a deterrent against using these funds for some other reason and also encourages continued contributions.
Insurance for Financial Security
Insurance helps you to provide for unexpected liabilities like hospitalization, critical condition cover, debt recovery, in a cost efficient manner
Term insurance
Term insurance is the easyest and cheapest form of life cover, which pays the sum assured on death. This is valuable to easely accommodate a family's survival in the unfortunate event of demise of the bread winner. This can also be utilized to cover
reimbursement of any debt of a policy holder by just assigning the policy to the creditor. Upon maturity or claim on the policy, the proceeds are paid to the lender. Loan Cover policies are a various where the sum assured keeps reducing in line with the loan balance.
Health insurance
These Policies give cover against real health care expenses like hospitalization, surgery, critical condition and so on. The favorable position could be in the form of fixed pay outs on hospitilization or a lump sum on diagnosis against some specified critical condition.
Accident benefit
This is usually an add-on cover over a basic policy and pays an additional sum assured to the beneficiary in case of death due to accident. Since accidental death is sudden and unforeseen, the family could be faced many problems like relocation, debt servicing and other needs for funds.
Retirement Planning
Indian life expectancy has improved dramatically over the years due to accessibility of advanced medical facilities. However, a longer working life may not really be possible due to occurrences of life-style induced bad health and high burn-out rate. The evolving demographic balance with plenty of young talent becoming continuously accessible may also be a deterring factor to a longer working life unless one is independently employed.
Thus, our retirement life span could well be as long as our active working life span. This means that we have to build a solid corpus during our active life to maintain our life style for the long post retirement life if we are to enjoy the true meaning of the word "retirement". Benefits Plans help us build up our savings during our winning years and provide us a lump sum on retirement. This lump sum can then provide us a retirement income by investing in an annuity.
Provide Post Retirement Income
The worst situation that a retiree can face is to run out of funds late into retirement. Such a circumstance may force him to look help from friends / relatives or liquidate his fixed assets which essentially are a compromise of self-respect. life insurance policies service in Mumbai This is where insurance offers the great way in the form of an annuity. Annuities purchased from the retirement corpus can either be utilized to provide regular post retirement income for a fixed term or for the whole life.
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