Life Insurance
Life Insurance – Securing Your Family’s Future
What is Life Insurance?
Life insurance is a vital financial tool that provides peace of mind and long-term financial security for your loved ones. By paying regular premiums, you create a safety net that ensures your family can maintain their quality of life, even in your absence.
It is not just a policy — it’s a promise of protection and care, ensuring that your dependents are shielded from financial hardships if something happens to the family’s main earner.
For example: If your monthly household expense is ₹1,00,000 (₹12,00,000 annually), a cover of around ₹2 crores can help sustain your family’s lifestyle. At 6% annual returns, this amount would generate the same income year after year, without disturbing your savings. (Note: Inflation should also be factored in while calculating cover.)
When to Start & How Long to Continue?
- Start Early: As soon as you begin earning. The earlier you start, the lower your premium, and the longer your protection. Starting young also ensures you are healthier, with no pre-existing conditions. Many critical illnesses like heart disease or cancer make it difficult—or even impossible—to get life insurance later. Even factors like being overweight can raise your premium, so beginning early is always the smarter choice.
- Continue Till Retirement: Ideally, your insurance should cover you from the time you start earning until the age you plan to retire.
Why this duration?
- During your earning years: You have a regular income and dependents rely on you financially. Insurance ensures they are protected in case of any unpleasant incidents.
- After retirement: You stop earning, responsibilities are usually fulfilled, and dependents may no longer be financially dependent on you. At this stage, continuing to pay for life insurance doesn’t serve much purpose and may also become a burden on the insured.
1. Term Insurance (Pure Protection Plan)
A pure protection plan that provides financial security to your family in case of your untimely demise. It offers high coverage at affordable premiums.
2. Whole Life Insurance
This plan provides coverage for the entire lifetime of the policyholder, ensuring financial protection for dependents.
3. Endowment Policies
A combination of insurance and savings, where the policyholder gets a lump sum at maturity or dependents receive the sum assured in case of death.
4. ULIPs (Unit Linked Insurance Plans)
These are market-linked plans that combine investment and insurance. Premiums are partly invested in funds and partly used for life cover.
5. Money-Back Policies
A policy that pays a portion of the sum assured at regular intervals during the policy term, with the balance and bonuses paid at maturity.
6. Critical Illness & Riders
Add-on benefits that provide additional coverage against major illnesses or specific risks, enhancing your insurance policy.
Recommendation: We recommend keeping insurance and investments separate. For example, products like endowment plans and ULIPs are primarily investment-oriented. Instead, we suggest opting for a pure term plan, which provides significantly higher coverage at very affordable premiums, tailored to your current income.
Financial Security
Protects your family’s lifestyle and future needs.
Tax Benefits (under old Income Tax Regime)
Premiums qualify for deductions under Section 80C, and benefits may be tax-free under Section 10(10D).
Flexible Premium Options
Pay monthly, quarterly, annually, or as a one-time lump sum.
Peace of Mind
Ensures your family’s financial well-being even in your absence.
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✅ Life insurance = Protection + Peace of Mind.
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✅ Start from your earning age and continue until retirement.
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✅ Ensure cover = at least 15–20 times your annual income/expenses.
👉 The goal of life insurance is simple: to safeguard not only your future, but also the future of your family. Choose the right plan today and give your loved ones the financial security they deserve.