Needs and Benefits of Life Insurance

Date 14 Mar 2024
Time 3 mins
3
Rated by 1 readers
Exit Intent Popup /Assets/Project/ABCL/images/close-button.svg

Get Guaranteed Returns After a Month^

Unlock the Power of Smart Investment!

*Min 3 characters
+91
*Please enter a valid 10 digit Mobile No.
Exit Intent Popup /Assets/Project/ABCL/images/close-button.svg
/Assets/Project/ABCL/images/Icon-Filled.svg

I agree to the Terms of Usage and Privacy Policy. By submitting my contact details here, I override my NDNC registration and authorize ABSLI to contact me by phone/e-mail/SMS/WhatsApp. Trade Logo "Aditya Birla Capital" displayed above is owned by ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) and used by ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the license. BEWARE OF SPURIOUS / FRAUD PHONE CALLS! IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint. ABSLI Nishchit Aayush is a non-linked non-participating individual savings life insurance plan (UIN No 109N137V05)

/Assets/Project/ABCL/images/Icon-Filled.svg

Thank you

for your details.

We will reach out to you shortly.

Buying life insurance has become extremely simple and also necessary in India. Life is completely unpredictable. Things can change in the blink of an eye and plunge the family into chaos. Since there is no way to avert or eliminate a tragedy, it is better to buy life insurance to safeguard one's financial future.

Need for life insurance

There are three primary reasons why life insurance is necessary. They are:

  • Providing for the family:
    Your family depends on you for all its expenses. Hence, your absence in the future can spell doom for their hopes and dreams. A life insurance policy reduces their dependence on one breadwinner and helps run the household.

  • Paying off debts:
    Your unpaid loans (house or business loan, private debts) can haunt your family in your absence. Creditors may harass your family for their money, and your loved ones may be forced to sell the house to pay off these debts. Instead, your life insurance policy can repay your debts and save your loved ones from uncertainty.

  • Achieving milestones:
    You may take a life plan that matures after a certain number of years. This means that you will get a large fund after maturity, which you can use for crucial expenses like children's future education and even buying a second home. Thus, your policy maturity can be timed to pay for milestones in your life.

Benefits of life insurance policy

There are many benefits – and no disadvantages – of taking life insurance. The most important benefit of life insurance is that it protects your loved ones against the perils of a lack of income in the future. Just as you are currently invested in providing for your family, the life plan provides a stable fund that your loved ones can use in your absence.

Apart from plans that cover both individuals and families, there are life policies designed for children and company employees, too. Many life insurance plans offer a maturity benefit as well as a death benefit. Plans with a maturity benefit can be useful to you even when you are around. They help you plan your financial future in a more systematic manner (as outlined above). Meanwhile, the death benefit of life insurance helps the family tide over the sudden loss of your income and helps keep the family savings intact for bigger purposes like paying for children's education or emergency hospitalisation.

Investment with life insurance

Insurers in India have now broadened the scope of the need for life insurance with the need to earn good returns on the investment. This has spawned such innovative life insurance solutions as endowment plans, annuity plans, retirement or pension plans, savings plans, etc. All of these are insurance products that offer the dual advantage of life coverage as well as the opportunity to earn capital gains on the investment.

How Much Helpful You Found This Article?
Star
3
Rated by 1 readers
3 / 5 ( 1 reviews )
Not Helpful
Somewhat Helpful
Helpful
Good
Best
Rating

Thank you for your feedback

Don't forget to share helpful information in your circle

About Author

Author

Thank you for your details. We will reach out to you shortly.

Thank you for your details.Currently we are facing issue in our system.

₹1 Crore Term Insurance @ just ₹542/month1
Min 3 characters
+91 phone
Please enter a valid 10 digit Mobile No.
*This field is required.
Buy ₹1 Crore Term Cover @ @Rs.492/month for Salaried Individuals¹
ABSLI DigiShield Plan
Life cover up to 100 years of age.
Covers Covid-19~ life claims
Covers Terminal illness
4% online discount.
Survival benefit after age 60 years.
Life Cover
₹1 Cr.
Premium:
₹542/month^
  • Disclaimer

    ABSLI Salaried Term Plan (UIN:109N141V01) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
    1LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Premium paying term: 10 years, Annual Premium: ₹ 5900/- ( which is ₹ 491.66/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
    ADV/2/23-24/3715

Subscribe to our Newsletter

Get the latest product updates, company news, and special offers delivered right to your inbox

Thank you for Subscribing

Stay connected for tips on insurance and investments

*Please enter a valid Email.