Family Protection- A resolution for lifetime

Written on Tuesday, January 2, 2018
By Mitali Sharma

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What's your new year resolution? This is a common question to be heard as the year passes by. Resolutions are heard to keep and thus for most of us the new year resolution for 2018 is likely to be the attempt to accomplish the goals of 2017, which we probably had planed in 2016. The crux of the matter is, we tend to go very light on our resolutions and thus can remain comfortable even if we fail to accomplish them within the desired time frame.  

 

But there is one resolution, which is relevant 365 days, and no one can afford to go light or casual about it. That resolution is Family's protection against all odds and uncertainties. Protection is a umbrella term and encompasses various aspects, one of its important aspects is wealth protection that ensures financial security for the family. 

 

Wealth protection can be best sourced through insurance. If your wealth is not protected, then no matter how much wealth you create, there will always be a loophole through which your wealth will sink down in face of unexpected life emergencies. Let's us not talk about the need for insurance because we all know about it well, rather check out how you should be utilizing insurance to ensure  yourself and your family's financial security.

 

Chose Life Insurance as per Your Needs

 

Different types of life insurance - its features and relevance 

 

1. Endowment Policy

 
a. Covers life risk amounting to sum assured till the specified maturity period
b. It includes the savings quotient that gets paid along with maturity benefit  
c. Maturity benefits on survival of policy tenure 
 
2. Term Insurance 
 
a. Covers life risk amounting to the sum assured only for a set period
b. Pure life insurance that aims at covering income loss (no survival benefits)
c. High life-risk coverage in comparatively low premiums. Another variant is TROP with return of premiums facility
 
3. Money or Cash Plans 
 
a. A portion of sum assured is returned on a periodical basis
b. Outstanding sum assured offer as a maturity benefit
c. Life risk an for the entire sum assured, even if survival benefits have already been paid
 
4. Whole Life Insurance 
 
a. Unlike a term insurance, it offers lifelong protection
b. Offers death benefits as well as survival benefits
c. Ideal to create an inheritance for children/family
 
5. Children’s Policies 
 
a. Specifically designed for the benefit of the child even in face of parent's death
b. Helps parents in creating a corpus of child's higher education/marriage/future
c. Best when taken with 'Weaver of premium' benefits 
 
6. Annuity Plans
 
a. A type of pension plan to safeguard the retirement against income loss
b. Offers the benefit of regular income post retirement ensuring financial independence
 
Quick Insurance Tips for 2018
 
a. As the family increases, one must check the adequacy of their insurance coverage and increase it if required 
 
b. Premium increases as you grow old, so when you are young, purchase your life insurance and medical insurance
 
c. When the need is life-risk cover, term insurance is easy to avail because in low premium it offers adequate coverage 
 
d. Ideally, your insurance should be a minimum 20 times of your annual income 
 
e. To save money on your medical insurance premiums, instead of going for a plan with huge sum-assured, one should take a base plan of average sum-assured and then add top-up plans on it as per the needs.  
 
f. Would-be parents should go for medical insurance with maternity benefits that offers child cover from day one
 
g. Professionals like doctors, lawyers, CAs etc, whose job roles involve the risk of indemnity, must ensure security with indemnity insurance plans
 
h. There are special plans for diabetes and hypertension patients offering day one cover*
 
* Terms and conditions apply
 

Get More Info Now!

 

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