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Insurance Guide
Life insurance is one of the most important financial investments an individual will make in their lifetime. It becomes very relevant as a life insurance policy could ensure that your family is looked after well and are financially secure in case of an unfortunate event. This page offers you detailed on how insurance works and it's overall significance in an investment portfolio

A life insurance is a policy made with an insurance company wherein, the company provides a lump sum payment in exchange of premium payments. This payout is known as death benefit and is paid to the beneficiaries upon the insured’s demise or after a set period. Typically, an individual chooses an insurance based on the needs and goals.

Life insurance offers financial security and forms a very integral part of your financial planning. Buying an adequate life insurance cover should be done prudently as it will help you to set a standard of living that you wish to give your family in case of an unfortunate event.

Life is very uncertain, and one never knows what tomorrow will bring. In such a scenario, life insurance plays a very important. It is not something that you just need or add to your investment portfolio, you truly need it to safeguard and protect your family, dependents, business or legacy. Though a loss of life can never be replaced by any means but planning a life insurance is sure to make things easier for those who you leave behind. It can also cover any debts or other financial responsibilities.

It can also be used to supplement your retirement as there are plans that offer a guaranteed stream of income every month.

Life insurance plays 3 primary roles in one’s life- Risk Cover, Compulsory Savings & Tax Planning

Risk Cover-Life insurance is more like a financial protection that is enables to outlast life’s unpredictable losses. Insurance is designed to provide one with a sense of security, helps in establishing peace of mind. It provides the family of the insured to live a financially secure life in case of untimely death. Hence it works as a great risk cover to handle contingencies in life.

Compulsory Savings- Insurance also inculcates the habit of compulsory savings. It is a very effective savings tool as it perfectly fits the needs of security in terms of financial stability it offers. This form of savings also helps in meeting financial requirements throughout one’s lifetime.

Tax Planning- The premium amount paid is exempted from taxes under Section 80C and death/maturity claim amount is too exempted under Section 10(10D). Hence, a life insurance policy is best way to save on taxes.

Term Insurance: It’s a policy that offers pure risk cover. Its straightforward, simple and the insured amount will be paid only if the holder of the policy passes away or becomes terminally ill

Money Back Policy: In this type of policy, the insured receives a certain sum of money at regular intervals which is also known as survival benefits

Retirement Plan: Such type of policy is an investment for retirement. Here the insured individual receives a regular pension post his/her retirement.

Endowment Plan: Such plans provide benefits like profits and bonuses and come with a maturity value.

Child Plan: Such plans help in saving to meet your child’s future needs. A comprehensive child plan will be very beneficial in helping fund your child’s education, career or wedding.

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