Life insurance has several purposes. The primary purpose of life insurance is helping your loved ones take care of their needs, especially at a time when you may no longer be around to provide for them. A dependent spouse, children, or aged parents will continue to be dependent on your income, and leftover savings even after your demise.
How much insurance should you take?
Follow this general philosophy to find your own target coverage amount: financial obligations minus liquid assets. Calculate obligations: Add your annual salary (times the number of years that you want to replace income) + your mortgage balance + your other debts + future needs such as college/education/marriage costs etc.
Difference between Term Plan and Endowment/Return based/Whole Life plan
The amount you pay into term life insurance premiums are only there to provide a death benefit to your beneficiaries if you die during a specified term, while money you invest in Endowment/return based/whole life insurance premiums builds cash value that you can use later in life or that will add to the death benefit pay out.
At Secure Investment, our focus is only on clients wellbeing and tailoring a Life Insurance plan as per their needs and requirements. Our partner for providing life Insurance solutions is India’s largest life insurer “LIC of India”. LIC of India is India’s largest and oldest insurance company providing a non- exhaustive list of Insurance solutions backed by trust and loyalty of millions of people.
Life insurance enjoys favourable tax treatment unlike any other financial instrument. Death benefits or any other returns are primarily income-tax-free to the beneficiary.
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