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Need and Benefits of Buying Life Insurance

Need and Benefits of Buying Life Insurance

Q: Q. What is the need for life insurance in life?

A. The benefits of life insurance help plan for your family's financial security in case of your early demise. It helps prepare your loved ones financially for possible tough times.

Q: Q. How to decide on the sum assured to be chosen under life insurance?

A. The sum assured that can fulfil the need for life insurance should be based on parameters like your current age, income, and existing financial liabilities.

Q: Q. How much do I need to pay to get the benefits of life insurance?

A. The cost and benefits of life insurance depend on the type of life insurance plan you purchase and the related specifications. You should choose a plan that is easily affordable.

Q: Q. What happens on not paying life insurance premiums on time?

A. The risk of losing the benefits of life insurance increases when you fail to pay the premium on time as per the policy terms. You get a grace period for premium payment if you fail to pay on or before the due date.

Q: Q. What are the maturity benefits of life insurance plans?

A. This again, depends on the type of life insurance policy you have purchased and its inclusion terms. You can buy life insurance plans with or without maturity benefits, depending on your financial needs.

To understand what is life is very confusing. While we need to plan for a better future, most misfortunes occur unannounced. What is certain to happen often leaves us bereaved while the uncertainties do their part in impacting our lives.

Particularly when you look at it all from a financia

Disclaimer: In Unit Linked Policies, the investment Risk in the investment portfolio is borne by the policyholder.

^*Disclaimer :

Axis Max Life Smart Secure Plus Plan. A non-linked non-participating individual pure risk premium life insurance plan| The premium calculated as per Standard premium for 30 year old healthy male, non-smoker, 40 years policy term, 40 years premium payment term (exclusive of GST) for Axis Max Life Smart Secure Plus Plan and is rounded off from Rs. 3,27,782. ^~1Condition for special exit value: Option to receive all premiums paid back at the age of 55 years and the life cover also gets terminated. Total premiums paid towards the policy (excl. GST) will be the Special Exit Value payable at the age of 55 years in case the policy holder wishes to completely exit the policy. Benefit available with special exit value -Total premium paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies & modal extra. The total premiums paid plus underwriting extra premiums paid plus loadings for modal premiums exclusive of all applicable taxes, cesses or levies. This value shall be applicable on the base cover premium only and not to additional optional benefits like ACI, Accident cover, Joint life cover and Voluntary Sum Assured Top-Up.

Written by

Alok Mishra

Insurance Writer

Alok Mishra is a Digital and Content Marketing specialist with 10 years of experience. He has spearheaded Web Content, Social Media & Branding, and Community Building initiatives to drive growth for prominent brands.

Reviewed by

Bhaskar Sinha

Insurance Expert

8+ years of experience in Life Insurance with expertise in Developing Life and Health Products, Digital Sales, Conducting effective trainings and Key Account Management.

Life insurance is a tool that helps lessen this burden that would fall on your loved ones when you will not be around. The need of life insurance can be realized from the very fact that even the basic essential expenses require a source of income.

This life insurance need is highly felt by the only breadwinners responsible for providing for their family.

Fulfilling the need of life insurance implies planning for a financial roof for your loved ones in your absence. Let us dig deeper into the need for life insurance in India for better understanding.

What is the Need for Buying Life Insurance?

The answer to this question about the need of life insurance is multi-faceted and requires us to look at it from different angles.

The primary need of insurance in India, let alone life insurance, stems from the lack of or limited awareness about various insurance products. When it comes to cover their lives and plan for financial security, many people do know about the very purpose of why life insurance is required. It is this lack of awareness that creates life insurance needs more profound.
The primary need of life insurance is realized by considering your family’s financial health in case of your unfortunate demise. In such an event, your loved ones would have to face economic hardship while regular expenses continue to take a toll on their lives. You can easily avoid this burden by planning to fulfill life insurance need early in life. Choose attractive life insurance plans from Axis Max Life Insurance that offers significant life cover at an affordable price.
Another aspect of life that makes us realize the need for life insurance is the increasing healthcare treatment cost. The rising inflation rates make people succumb to realities, leaving the concerns for a better financial future at bay. The situation can be improved by realizing the need of life insurance in our current financial condition. For instance, if you look at why life insurance is required for your family with you being the only breadwinner, you can envision the possibility of things that would happen in your absence.
The need of insurance in India, particularly life insurance, is highly felt amongst the masses during the current COVID pandemic. Since no one knows when it will end, more people have realized the need of life insurance to secure the financial future of their family members.

Moreover, you can buy life insurance plans that offer COVID 19 coverage to fulfil the need for life insurance in the best possible way.

Also Read: Types of COVID Insurance

Benefits of Life Insurance Plans

1. Financial Cushion for Family to Bank On

Every individual has some financial responsibilities in life, which may vary as per age. Just wondering what would happen to the family in case of losing breadwinner is enough to give nightmares to many. However, the benefits of life insurance can help avoid them.

One of the most significant benefits of life insurance policy is peace of mind that comes from knowing that your family and debts will be taken care of after you. You can also plan for additional cover through riders under the benefits of Axis Max Life Insurance plans. It is best to plan for availing these benefits of life insurance in a young age.

2. Steady Investment Planning

Investment planning also plays a major role in our lives, which is another reason why many people feel the need of life insurance. Along with the income replacement benefits of life insurance policy, you also get the opportunity to invest money.

Axis Max Life Insurance benefits also include significant returns on the amount invested during the plan tenure, based on the chosen life insurance plans. Many of our life insurance plans offer good returns at maturity, which can help you get life cover while also achieve various financial goals in life.

When realizing the need for life insurance, it is crucial to keep in mind the objective, which may vary from one individual to another.

Also Read: Types of Investments in India

3. Significant Life Cover at Affordable Premiums

Life insurance policies allow you to choose a sum assured at affordable premiums, depending on your age.

Since the benefits of life insurance depend on several parameters, it is crucial to know their impact on the premium before you buy one. The younger you are, the lower will be the premium, in general.

4. Assured Income for Retirement

Retirement planning is a crucial decision for life. Otherwise, there is a higher risk of financial dependence on others. With the help of Axis Max Life Insurance benefits, you can plan to live the golden years of your life with ease and peace.

You can invest in different retirement plans we offer to receive a regular income or a lumpsum payout to deal with the expenses of your retired life. With the financial benefits of life insurance, you can live your dreams of traveling the world with your spouse or follow retirement goals as you like.

5. Opportunity to Save Tax

When the tax season approaches, most tax-paying individuals look for ways to maximize tax savings in one way or the other. By investing in various policies next to realizing the need of life insurance, you can save more tax. The premium you pay towards these policies makes you eligible for tax deductions as per prevailing tax laws depending on the types of life insurance. The tax benefits of life insurance are also covered under the Income Tax Act, 1961.

As an earning individual, it is crucial that you realize your contribution to the Income Tax and pay it accordingly.

How to Select a Life Insurance Plan

1. Consider Your Needs, Not that of Your Peers

The need of life insurance is realized based on various spheres of an individual’s life. Hence, the choice of a suitable life insurance plan must be made after carefully analyzing your needs. It is advisable to avoid being influenced totally by peer recommendations. It is because what works for an individual may not be suitable for others.

2. Compare Policies Online First

Knowing the benefit of life insurance policy is crucial before you invest in it. You can do this easily by comparing various life insurance policies online. Check for the differences in terms of policy features, premium, insurer’s reputation, to name a few. With a proper understanding of the policy terms, you can easily make an informed choice.

3. Choose a Suitable Policy Period

Selecting the right policy period is as important as its sum assured. Hence, you must choose a life cover till the time you want to continue working in life, which can be at the age of 50, 60, or even beyond. Keep in mind that the policy period does determine the premium payable. So, make a suitable choice accordingly.

4. Check Claim Settlement Ratio of Chosen Insurer

In case you opt for a pure term plan, the benefits of life insurance will only be known to the policy nominee after you are not around. Therefore, it is crucial that you check the insurer’s ability to settle claims received. This can be done by checking their claim settlement ratio, as declared in the IRDAI report.

Frequently Asked Questions (FAQs)

Q. What is the need for life insurance in life?

Q. How to decide on the sum assured to be chosen under life insurance?

Q. How much do I need to pay to get the benefits of life insurance?

Q. What happens on not paying life insurance premiums on time?

Q. What are the maturity benefits of life insurance plans?

ARN: Mar/Bg/22

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