Diwali is a festival of lights and an occasion of feeling merrier. It dispels the darkness with light and stands for prosperity as well. The way we welcome and worship goddess Laxmi, the goddess of wealth, similarly, we should express our gratitude for financial stability also.
This Diwali let us embrace the spirit of financial empowerment and take the first step towards securing your loved one’s financial future.
This is where life insurance is significant. It is like giving your family a secure and stable future with a promise that every Diwali of their life will be as happy as this one, and the light will never dim in their life.
In this Blog we will explore
- What is Life Insurance?
- Significance of Life Insurance
- Popular Types of Life Insurance Plans in India
- Conclusion
What is Life Insurance?
Life Insurance can be defined as a contract between a policyholder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
Why is Life Insurance the best gift for your loved ones this Diwali?
With Life Insurance, this Diwali you can give peace of mind and financial security to you and your family. Apart from this, here are some key benefits of buying a Life Insurance Plan.
Investment Benefit- Fulfill your cherished ones’ goals, dreams, and changing needs.
The primary benefit of buying a Life Insurance Policy is offering financial security to your loved ones. Under life insurance plans, there are many different pension and savings plans available in the market like money-back plans or guaranteed plans. So based on your financial goals, you can choose any of the plans & build a good corpus to achieve your important monetary objectives.
The best plan concerning investment benefits in Life Insurance is a unit-linked insurance plan, better known as ULIP, combining life insurance with financial investment. Unit-linked insurance plans offer a wide choice of fund options and portfolio strategies. ULIPs allow you to withdraw money regularly from your policy after 5 years of lock-in.
Death Benefit- Protect your family against the darkness of the unforeseen.
We all know that life is unpredictable, and accidents or unforeseen events can happen anytime. Therefore, as a responsible individual, it is necessary to be financially prepared for any unforeseen circumstances. So, the death benefit is one of the main benefits of a Life Insurance plan that offers protection to your loved ones at times of unfortunate events like the loss of the family’s primary breadwinner.
The best example of the death benefit in Life Insurance is Term plans. It offers financial security to your loved ones’ future even in your absence that too at the most affordable rates.
Tax Benefit- Add more to your Savings
Last but not least, another most important benefit of a Life Insurance Plan is the Tax Benefits. The policyholder can claim tax exemption on premiums paid for life insurance plans for up to Rs. 1.5 lakh under Section 80C of the Income Tax Act 1961.
Popular Types of Life Insurance Plans in India
Term Insurance Plans
Term Insurance Plan is a pure protection plan that works as a safety net for your family. Under this plan, policyholders get coverage for a specific term or duration. If something unfortunate or unforeseen happens to you (policyholder) during this period, the insurance company pays a lump sum amount (sum assured) to your nominee.
Unit Linked Insurance Plan
A unit-linked insurance plan (ULIP) is a perfect combination of insurance and investment. Under this plan, one gets life cover that offers financial protection for your loved ones. In addition to this, it also gives you the potential to create wealth through market-linked returns from systematic investments.
Endowment Plan
If you are looking for a plan that offers a dual benefit of insurance and savings, buy an endowment plan. Under this plan, you get life coverage for a specific term, and in case you outlive the policy term, you will get a lump sum amount as a maturity benefit. In case of unfortunate events during the policy term, the sum assured is paid to your nominee.
Whole Life Insurance Plan
The whole life insurance plan offers lifelong protection and death benefits to the nominee. Along with death and maturity benefits, it also has a savings and investment component. A portion of your premium goes towards building a cash value, which you can access or borrow against in the future.
Retirement Insurance Plans
Retirement insurance plans, also known as pension plans or annuity plans. One of the wise investments to build a corpus for your retirement. To avail of the benefit of these plans, you are required to pay a regular premium in your working years, and upon retirement, you will get a regular stream of income or a lump sum amount, ensuring a financially secure retirement. It is also known as the Life Long Income Plan.
Read more: Retirement Planning
Choose the Light over darkness with the Best of Life Insurance Plan
Just as the light of a solitary earthen pot is sufficient to light an entire room, in the same way, the light of life insurance can help you triumph over financial uncertainties in the face of unforeseen circumstances.
While tangible gifts form an important part of the rituals between loved ones for the festive season, some intangible gifts hold a deeper value. A life insurance policy is a valuable gift that will protect the interests of your family in the long run.
This Diwali choose Life over Darkness with the best Life insurance plan!
