Post-COVID-19 pandemic world, the world will see a change. Today, work-related activities in various sectors such as manufacturing, pharma, finance, FMCG, etc. people are trying to confront the unforeseen health issues accosted by the COVID-19 pandemic. Life insurance benefits are important parts of the tool to cushion you from healthcare expenses.
Term insurance plans can be purchased online these days. Neither the company representative can reach your place nor can reach the insurance company office to complete the paperwork due to travel restrictions. The rule of social distancing has made online insurance buying more popular.
Why is it important to purchase a term insurance plan?
Term insurance plan is a must-have for every family because of the following reasons:
- Financial difficulties arising after the bread earner’s demise can be cushioned to a greater extent by term insurance plan.
- Daily expenses, education, marriage expenses can all be managed with the term insurance plan.
- Loans procured to buy a house, a vehicle can all be managed by term insurance plan in case of the untimely demise of the family head.
In short, term insurance plan is a complete financial safety shield to procure for the well being of the family in the future.
Difference between a term insurance plan and whole life insurance plan:
A term insurance plan offers all the benefits only in case of the untimely demise of the policyholder during fixed-term whereas in whole life insurance you get a life cover as well as savings benefits.
Let us discuss the types of Life insurance.
Life insurance is having wide boundaries for coverage. There are different types of life insurance tailored to meet your needs
- Term insurance plan
The term insurance plan provides life coverage to insured for a certain period. In case of the untimely demise of the insurance holder, dependents never face a financial crunch.
Benefit – To safeguard family’s financial future
It provides life insurance with the financial investment so that you can enjoy both the features in a single policy.
Benefit – To provide financial security by creating wealth and providing life cover.
- Endowment plans
Endowment plans help in offering the financial gains through investment plans and offers a money-back after the period is over. They are not related to the stock market so are risk-free. They also provide life cover.
Benefit- To help in wealth creation and also provides life cover.
- Savings plan
This plan again offers the benefit of savings plans in addition to the life insurance cover.
Benefit – Wealth creation and life cover
- Whole life insurance plan
Life insurance policies give coverage for 10, 20, or 30 years but this policy gives coverage till the age of 99. This plan is for people who have dependents for a long age.
Benefit – Life coverage for a long period
- Retirement and pension plan
Retirement plans offer monthly income after retirement. You and your family will not face financial difficulties to meet the daily expenses, healthcare, and enjoy a stress-free life.
Benefit – Fund creation to benefit after retirement All the above plans also help in savings taxes. Choose and invest in the right one that fulfills your financial goals.