While life insurance has become very popular in India over the last few years, some hidden facts about life insurance still make it surprisingly enjoyable. Life insurance allows you to keep your life covered and thereby keep the financial wellness of your family members secured.
The facts about life insurance allow you to understand the covers available in a more straightforward way to find and choose the best plan. What are these life insurance facts, and how can they help you? Let's find out.
Facts about Life Insurance that you may not know:
Here are some of the most exciting life insurance facts that you should know before you buy a life insurance policy for yourself:
- It makes your portfolio stable: Insurance is essential to life, and this is a life insurance fact that we all know about insurance. When you buy a life insurance policy, you combine insurance and investment elements, which brings a lot of stability to your overall financial portfolio. As a result, having a few good life insurance plans proves to be very beneficial to your financial roadmap.
- It is very affordable: Another basic yet largely unknown fact about life insurance is that the plans are pretty affordable. Some plans, such as the term insurance plans, are highly economical. Many people do not know this and stay away from life insurance, fearing it is too expensive. If you too have this misconception, you should not listen to the myth and know about life insurance and then get the best policy at the best rate.
- It is convertible: There are certain types of life insurance plans that are convertible. These include the term insurance plans that can be converted into whole life plans. Doing so gives you the flexibility to extend the scope of coverage and add more excellent value to the life cover.
- Riders are available: You are not bound to stick to your insurer's plan when you buy life insurance. You can customise the plan as per your needs by adding a few add-on covers known as riders. Riders allow you to make your plan more flexible and better suited for your needs. The typical life insurance riders include the critical illness rider, the accidental death benefit rider, and the waiver of premium rider, among others.
- It is cheaper when younger: When looking for what to know about life insurance, you will be surprised to find that life insurance coverage costs a lot less when you are younger. This is mainly because a young person is fit and healthy and dying is lower too. As a result, the insurance provider offers the plan at a discounted rate. If you are young and fit, make full use of this and get a life insurance plan at the earliest. Save money and stay covered in a comprehensive and wholesome manner as well.
- It offers several tax benefits: You get many tax benefits when buying a life insurance plan. First and foremost, the tax benefit under Section 80 C is available here. You get a tax rebate of up to INR 1.5 lakhs a year for the insurance premium you pay. Then, suppose you add a rider such as a critical illness rider. You get additional health insurance deductions under Section 80 D. The sum assured paid to the family after the policyholder's demise is tax-free. So, you don't have to worry about your family losing out on a percentage of the payout due to any taxation norm.
- It is available in various types: Life insurance is available in many different types. Since everyone has a different life insurance requirement, you need to see which plan would suit you the best. You can choose from the highly affordable term insurance plans or the slightly risky ULIPs. You can settle for an endowment life insurance policy or go in for a pension plan. Make a thorough list of your own needs, and then find the type of life insurance that aptly corresponds to your needs and requirements.
If you were wondering about what to know about life insurance, we have the best answers. Understand these interesting yet straightforward life insurance facts, and you will be able to get the best policy for yourself.
As mentioned above, life insurance is a modern-day boon. It offers many benefits and helps protect the economic well-being of your loved ones. Life is unpredictable, and you can never guess what challenge lies at the next juncture. Therefore, it is an excellent decision for you to understand all the facts associated with life insurance and get the best coverage. Add some riders to your plan while you select the perfect type of life insurance policy. Look to buy your plan online after comparing all the available options as that will surely help you find the best plan at a reasonable rate.
Disclaimer: The information published in this article is for reader′s reference only. The content of this information is to provide an overview of your life insurance needs. It should not be relied upon for personal, medical, legal or financial decisions, and you should consult an appropriate professional for specific advice. The makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.