Life Insurance Plan
Having a family that cares for you is the most precious gift in life. You do everything possible to be with your loved ones and take care of their needs – both emotional and financial. To make sure that your loved ones are protected and happy throughout their lives, you must take steps to protect their financial future if something unexpected happens to you.
It is where the decision to buy a life insurance policy plays a vital role. Life insurance acts as a tool to protect your family from potential financial losses that may come up after your unfortunate demise. The life insurance benefits your family members will receive help pay off debts, meet regular living expenses, and support various life goals.
What is Life Insurance Policy?
A life insurance policy refers to the contract between an insurance provider and an individual. As per the agreement, the policyholders pay a certain amount as the policy premium while the insurer pays a specific amount to their family on the untimely demise of the life insured.
With death being the only sure thing in life, it is crucial to buy the best life insurance policy that suits your financial needs.
Why Choose Life Insurance Plans?
A life insurance policy helps you safeguard the financial interests of your family when you are not around. Millions of people buy life insurance for reasons that are often difficult to put into words. It forms a crucial component of a sound financial plan because of the following benefits:
1. Financial Protection for Family
A life insurance policy will provide a specified sum to your family (the chosen nominee) at the time of your untimely demise. They can use the sum assured to fulfil various financial needs.
2. Critical Illness Benefit
You can opt for a critical illness rider with a life insurance policy, which offer protection against critical health ailments, such as cancer, kidney failures, and cardiovascular issues. This way, you or your family need not worry about the financial side of medical emergencies.
3. Tax Deductions
The premium you pay for a life insurance policy is eligible for tax deductions up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.
4. Peace of Mind
With the best life insurance policy by your side, you get peace of mind, knowing that there is a financial safety net your loved ones can bank upon after you.
5. Extensive Coverage at Low Cost
insurance companies offer significant payouts for life insurance (like term plans) at a low premium, depending on your age and health condition.
6. Opportunities to Create Wealth
Life insurance plans like ULIP (Unit Linked Insurance Plan) gives you the benefit of life cover along with market-linked returns from your investment.
For example, Max Life Online Savings Plan – Variant 1 comes with the benefit of life cover along with a lump sum payout for your financial goals. You can also select the funds that suit your investment style.
7. Financial Planning for Life
Along with providing financial support against the event of untimely demise, life insurance plans also work as long-term investments to meet various goals in life. By investing in life insurance at the right age, you can plan well for different life stages.
8. Planning for your Child’s Higher Education
Saving money for your child’s education might be one of the biggest priorities for you, being an Indian parent. By investing in the best life insurance policies, you can plan for your child’s future and help him secure various educational milestones in life.
9. Assured Income for Retirement
Life insurance is a financial instrument that you can choose to plan for retirement. The steady payouts it can offer in the form of annuities can become the source of income for your retired life.
Who Can Buy Life Insurance Policy?
Any individual, either male or female, falling into the age-group of 18-65 years, can buy life insurance in India as per the life insurance terms & conditions
| Age Group | Importance of Buying Life Insurance in a Specific Age |
| 20-30 | Significant coverage at a low premium will help in repaying education loans if any along with other financial needs |
| 30-40 | Financial protection for the entire family and regular monthly income as per the life insurance plan chosen |
| 40-50 | Opportunity to create wealth child’s higher education and retirement planning |
| 50 and Above | Ease of repaying huge financial debts for the family if any along with other benefits |
Here are some other related aspects of buying life insurance you must know:
1. Just like non-smokers, even smokers can avail life insurance, though the rate of the premium may differ. Also, they must inform the insurer about their habit of smoking while buying a life insurance policy.
2. Disabled individuals can also purchase the best life insurance policy if they can prove that they provide for their family members. They also need to undergo medical tests to determine the policy premium based on the degree of risk involved.
3. People suffering from pre-existing medical conditions can buy life insurance. They need to inform the insurance company about the pre-existing health conditions if any. Failing to disclose the same while purchasing a policy may lead to claim rejection later.
At Max Life Insurance, we offer life insurance policies to individuals having pre-existing illnesses.