Bad times do not come knocking. They crash and demolish your entire life in a matter of a few minutes. This is why having a backup always helps! A life insurance plan is one of the best backups that you can have. You always want the best for your family. You want to ensure that the smiles on your familys face always stay constant, even when you arent around. Opting for an online term insurance plan can help you do that!
What Is Life Insurance And How Does It Work?
Life insurance, as the name suggests is a life cover for any individual who opts for the plan. A life insurance plan offers financial protection during a tragedy. While different types of life insurance plans have different types of benefits and financial offerings attached to them, every type of life insurance plan offers a life cover. It pays out a death benefit to the insureds family members in the event of the insureds death. This is usually a lump-sum amount of money, which can go a long way to help the family financially.
Types of Life Insurance Plans
Term Insurance Plans These plans offer a full risk cover against any type of tragic occurrence.
Unit-linked insurance plan (ULIP) These plans have a risk cover for death as well as an investment opportunity for future financial goals.
Endowment Plan This plan offers dual benefits of an insurance cover as well as savings.
Money-Back Plan Along with an insurance cover, this plan offers to pay out periodic returns to the insured.
Whole Life Insurance Plan This online term insurance plan offers an assured life cover of the individuals whole life, without any maturity limit. Some plans may have a limit of 100 years of age.
Savings and Investments Insurance Plan This plan allows the individual to save and gain long term investment returns.
Child Insurance Plans This insurance policy allows you to safeguard the financial future of your children and fulfil their future goals like education or wedding expenses.
Retirement Plan This plan offers to create a corpus for your retirement, allowing you to retire without any kinds of financial strains or worries.
Why opt For A Unit-Linked Insurance Plan?
A unit linked insurance plan is a type of online term insurance plan that offers the dual advantage of an assured insurance cover and the flexibility of earning returns on investments. The premium of this plan is divided into two parts one that goes into providing an assured life cover and the other towards investments. Depending on the risk appetite, the investments are made within various kinds of financial instruments like equity, debt funds, hybrid plans or even debt funds. This plan offers comprehensive coverage of insurance as well as investments, making it a great choice for individuals. All the investments are done with complete transparency, allowing you to check where your money is being invested at every stage of the plan.
Apart from the inclusive coverage that it offers, a unit-linked insurance plan is also a great tax saving mechanism. The premiums paid towards a unit-linked insurance plan are eligible for a tax deduction under Section 80C. In addition to that, the maturity benefits are exempt from income tax under Section 10(10D) of the Income-tax Act. This comprehensive tax saving benefit is a bonus feature when you opt for a unit-linked insurance plan.
Steps to Buy A Unit-Linked Insurance Plan
There are various unit-linked insurance plans available in the market. As long as you are 18 years of age, you can opt for any one of these. Do note that a unit-linked insurance plan has a lock-in period of five years. Opt for a plan with a company that has a good standing in the market and the one that invests in dependable financial instruments. Check for a steady customer asset base as well as a proven track record with strong investments. For your premium payments, you can opt for a monthly, half-yearly or yearly mode of payment via any online payment methods.
A unit-linked insurance plan is one of the best investment options for individuals interested in a versatile instrument to park their funds in.