Family Life Insurance: Protect you and Your Family

life insurance is not just about finances, but it’s also an emotional concern. Every one of us wants to live a long, healthy and happy life with our loved ones. But, then life can throw a curveball at us when we least expect it. Life insurance is the perfect safety net , helping you to protect your family if something unfortunate were to happen to you. Losing someone is a huge loss, and the last thing on anyone’s mind is the finances. With life insurance, you can continue protecting your family’s finances and future, even when you are not around.

Financial Stability

In case of some uncertain death especially the breadwinner of the family, insurance cover will help the family members to continue leading the lifestyle, they are accustomed to.

Aid for Crucial Expenses

The best part of life insurance is that it not only offers life coverage but also offers you immense returns at crucial stages of life. For instance, certain plans offer a lump-sum payment during retirement, or when your child goes to college and so on.

Support during Tough Times

Life insurance cover can help your family members manage expenses during tough times like medical bills during hospitalisation, legal service charges, funerals and more.

Provides Loan Cover

A lot of people take loans for various purposes. However, if a loan borrower passes away untimely, then his/her dependants need to repay the loan. This can put them under a substantial financial burden. But if the loan borrower has a life insurance policy, then the insurer can pay a sum assured to his/her beneficiaries. This sum assured can be used to repay the loan.

Simply put, life insurance is a contract between you and your insurance company. You pay premiums for the tenure of the plan, and in return, the life insurance company offers you several benefits like death benefit (to your beneficiary), maturity benefit, bonus payments, etc.

There are various types of life insurance plans, and you can choose a policy based on your requirements. Here are a few types-

Term Insurance

term insurance is one of the most popular types of insurance plans. In case of term insurance, the insurer pays a sum assured to the policyholder’s beneficiaries if he/she dies untimely.

Retirement Plans

Retirement plans can help the policyholder accumulate funds for life after retirement. These policies can also provide the death benefit to the beneficiaries in case the policyholder meets with an untimely demise.Furthermore, if the policyholder survives the term, then he/she can receive regular instalments for post-retirement life.

Child Insurance

Child insurance plans can help in providing security to your child’s future. You can use the benefits of child insurance to pay for your child’s education, health, etc.

The beneficiary, in insurance-speak, refers to the person who receives the benefits of the policy upon your death. Usually, the beneficiary is the partner or children of the policyholder. While choosing a beneficiary, think about who will be responsible for your debts, legal charges, hospital bills, and other expenses, after you are gone.The best part is you assign 100% of the benefits to one beneficiary or divide it among several beneficiaries. The choice is all yours.

There's no single answer. It depends on your expenses, debts and other commitments. Work with your insurance counsellor, to evaluate your finances and figure out the right coverage for you.

Life insurance is the best way to continue providing your loved ones with financial support, even in your absence. Think of it as a helping hand, to reduce the burden and responsibilities of your spouse and children, even when you are not there.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.