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Benefits and Advantages Of Insurances | Best Life Insurance Of 2021

Married pensioners—Instead of choosing between a pension payout that offers a spousal benefit and one that doesn't, pensioners can choose to accept their full pension and use some of the money to buy life insurance to benefit their spouse. This strategy is called pension maximization.

Now, let's see an example:

Mr Kumar (Life Assured) pays Insurer an annual amount (Premium) over 5 years (Premium Payment Term) to make sure that his wife (Nominee) gets a certain assured sum of money (Life Cover) in case of an unfortunate event during the 10 years or Lumpsum amount at maturity on survival at the end of the policy term.

Life insurance not only covers the risk arising due to an unfortunate event but also gives you additional benefits like tax benefits, savings and wealth creation over some time. The right life insurance plan from a trusted company can help one get long-term risk cover plus savings, i.e. dual benefits from one solution.

Benefits of Life Insurance

Life insurance is designed to minimize the impact of the financial loss your family may incur upon your demise. The benefits of such plans are fourfold, aptly contained within the acronym "LIFE":

Liability Free

Life insurance gives your family the power to be independent and self-reliant. A good term plan can help them repay financial liabilities like home loan, auto loan, personal loan, or a loan on the credit card. The term plan may also cover hospitalization charges and critical illness treatment, giving you a comprehensive protection package

Income Replacement

If you are the sole breadwinner in your family, a life insurance plan becomes can provide a guaranteed income to your family every month, making sure that their everyday life is not disrupted and they remain financially stable.

Education and other expenses for dependents

The payouts from life insurance can help to pay the bills for the education of your children, as well as expenses for their wedding or medical costs if any.

Immediate Expenses after Demise

It will also help your family cover a part of essential expenses immediately after your demise, such as funeral costs and/or medical bills.

Why you Need a Life Insurance Now?

The significance of having life insurance is to avail the "peace of mind" that it brings along. However, having an adequate amount of life insurance effectively sets your mind free of some important questions like:

• What will happen to my family financially after I die?

How will my wife and kids take care of their expenses after I am no more?

• How will I provide for my family in case I lose my job after an accident?

• How do I ensure that I am able to fund my child's higher education?

• How do I ensure an income after my retirement?

Best Life Insurances

Best Overall: Prudential

Best Instant Issue: State Farm Life

Best Value: Transamerica

Best Whole Life: Northwestern Mutual

Best Term Policies: New York Life

Best for No Medical Exams: Mutual of Omaha

Best for Military: USAA

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