Significance of Term life insurance

by

peter paul

We all would have heard it a hundred times that Life is unpredictable, but very few of us understand this. Just like our life, death is also unpredictable and we never know what will happen in the future. Therefore, it is important to be prepared for unseen events of the future and taking up a good life insurance is one of the sure fire ways to make our and our family s future secure.

Term Life Insurance is an agreement between the insurer and policy holder that guarantees payment of a stated amount of monetary benefits at the end of a specified term or on the death of the policy holder. Life Insurance provides for financial security in the event of death or on the inability to earn due to physical disabilities.

Taking a life insurance responsibly can help us live the life we want to and protect our family after we are not there. Without life insurance many people would be left destitute in the event of an unexpected disaster. Besides providing for financial security in the case of one\’s untimely death, it can be used to accumulate a kitty for the old age, systematically build assets for funding one s child\’s education and also for saving on taxes.

Let us look at the roles of life insurance plays in our life

Life insurance as a risk cover

First and foremost, the primary task of life insurance is to ensure protection against losses that we are not prepared for, to help outlast life s unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides us with that unique sense of security that no other form of investment provides. By buying life insurance, we buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees.

Term Life Insurance provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating and this is where an insurance policy can lend timely support to the family in such times. It also comes as a great help when one retires, in case no untoward incident happens during the term of the policy. With the entry of private sector players in insurance, we have a wide range of services and benefits to choose from. Most of these services can be further customized to fit specific needs.

Life insurance as an investment option

Life Insurance is an attractive option for investment. While most people recognize the tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more funds compared to regular investment options, and this is besides the added incentives offered by insurers.

IndiaFirst

Term Life Insurance

is India\’s Premier Life Insurance provider which provides you Protection Plans, Savings, Investments, Child Plan, Term Life insurance, ULIPs with best returns.

Article Source:

ArticleRich.com