International Insurance Awareness Day!

When you are healthy, young, and full of zest, it’s easy to think, “it won’t happen to me.” But life is uncertain and has a way of throwing many unexpected things at us when we least expect them. In order to be fully prepared for those unannounced curveballs, therefore, insurance is very essential. It gives us some measure of financial protection, should a disaster happen. Insurance is an indispensable part of any financial plan. And when it comes to financial planning, ‘Life Insurance’ plays a significant role.

Life insurance is the pillar of financial security and deserves consideration by every household. It ensures that your dear ones are taken care of if something untoward happens to you.

What is Life Insurance?

In the event of your demise during the policy term, life insurance pays your nominees a lump sum amount, thereby, helping them to stay on the road to financial security.

Thus, it is more than worth to take time off to understand clearly why life insurance is so important and how much protected your family is and what is better than International Insurance Awareness Day (June 28) to evaluate your insurance needs.

When it comes to understanding ‘how protected your family is?’ you first need to evaluate your ‘Protection Quotient.’

What is Your Protection Quotient?

The ‘Protection Quotient’ is the degree to which you feel protected on a scale of 0 to 100. It measures your level of preparedness, awareness, preference, and ownership of life insurance plans.

To help you understand your protection quotient, Max Life Insurance has launched a unique tool called 'My Protection Quotient' (MyPQ). MyPQ aims to gauge your preparedness for your life goals and protection against unexpected eventualities of life. So, on this National Insurance Awareness Day, use this tool to analyze your protection quotient and know where you stand.

The results of the final output of your quotient can be read as follows:

After evaluating your protection quotient, the next step is to ensure that you have the right amount of life cover to help you achieve your life goals and cover your loved ones with risk protection. Buying a suitable life insurance plan is the right move in this direction.  

However, when you are looking to purchase a life insurance plan, it is vital that you are equipped with the correct information. This will not only simplify the decision-making process but also help you to arrive at the right plan. In order to consider protecting your loved ones, therefore, we have a few interesting facts that will help you in selecting the right plan for your family.

Sum Assured Can Be Increased During The Course Of The Policy

Your life changes every time when you move from one stage to another. Moreover, these diverse stages of life often imply changes in your spending patterns and overall expenses, especially after marriage or starting a family.

However, these milestones can also be insured with ‘Life Stage Protection Feature’, which helps you increase your coverage to adjust your financial circumstances and changed lifestyle at different milestones. For instance, you can increase your coverage at significant milestones of your life like:

1. Marriage

2. Childbirth

3. House purchase

Death Benefits Can be Received as Monthly Income Too

For those who don’t wish that the death benefits should be paid as a lump sum amount to their nominees, there is another option for them. In most term life insurance plans, you have the option to receive the sum assured as monthly income if you think that it might become difficult for your loved ones to handle and invest the lump sum amount.

Max Life Insurance’s term plans offer the option to receive the claim amount as level or increasing monthly income.

Term Insurance Offers Coverage up to 85 Years

While you might know about the advantages that term insurance offers, you may not know that you can buy term insurance not only as early as in your 20s but also as late as in your 50s and get coverage up to 85 years of age.

Nowadays, individuals tend to work even after retirement, sometimes up to their late 60s. Therefore, insurance plans that provide coverage as long as 85 years prove to be beneficial for such individuals. And considering the life expectancy in India, which is almost 68 years, the plan with 85 years long term literally acts like your whole life insurance plan.

You Can Receive Your Premiums Back On Maturity On Completion Of Policy Term

When it comes to making decisions regarding family’s financial security, most individuals show a greater affinity towards instruments which give returns. Therefore, when it comes to buying term insurance, individuals often procrastinate it or ignore buying one on the grounds that there is no maturity value.

In term insurance, if the life assured outlives the policy term, he does not get any returns as there is no element of investment and saving. However, there is another variant of term insurance known as ‘Return of Premium Term Plan.

In these plans, if the life assured survives the policy term, the insurance company returns all the premiums that were paid during the term. These plans are extremely beneficial, especially for risk-averse investors who expect returns from their term plans.

ULIPs offer Instant Rebalancing

A Unit-linked insurance plan or a ULIP is a type of life insurance product that offers dual benefits of insurance protection and higher returns. ULIPs also offer an array of fund options to meet the requirements of policyholders with different risk appetite.

Not only this, ULIPs come with the ‘Switch Fund Option’ that allows investors to switch from one fund to another, thereby instantly balancing their portfolio during changing market conditions. The primary objective of the switching option is to allow investors to leverage from funds that are performing well. T&C Apply

Be Aware, Be Insured

Absence of the primary earning member can make things rough for the surviving family. However, life insurance can ensure that your dear ones are financially protected in the event of any unforeseen contingency.

So, on this International Insurance Awareness Day, take time to check how much protected your loved ones are. Know your ‘Protection Quotient’, review your coverage, and if you don’t have one, get one at the earliest to protect what matters the most - Your Family. T&C apply

ARN:- 28062019/KC1