Beat the Pandemic - Secure the future of your loved ones with life insurance

The covi-19 pandemic has posed financial challenges to almost everyone. Many families have reeled under the financial strain caused by medical costs, loss of jobs, or the shutting down of businesses. In this economic climate, the importance of financial planning and security has become more apparent than ever.

The natural course of action is going for life insurance. It can secure your family's financial future in case of your untimely demise. In these challenging times, with life insurance, you can breathe easy knowing that your family has a safety net in case misfortune strikes.

But there are so many options to choose from that it gets confusing. We have compiled a list of the most popular life insurance products, explaining their benefits and unique features, so you can weigh in on your options and decide which one (or ones!) is right for you.

Let's commence our discussion by understanding what life insurance is.

What is Life Insurance?

As evident from its name, it is a family of insurance products that provide life cover. The policies that come under it usually have a sum assured, which is paid out to the nominee/nominees in case of the policyholder's untimely demise. This is the basic feature that every kind of Life insurance provides. Any additional features may enhance or transform the policy into a different kind of life insurance, but it will always have life cover.

Let's look at the four most popular Life Insurance products available and how they can help provide a secure future to your loved ones:

Term Insurance

It is one of the most common life insurance policies today. As the name suggests, Term Insurance provides life cover to the policyholder for a fixed term or policy period. Most policies have an entry age of 18 years, and the customer decides the maturity age as per their convenience.

The Premiums are decided based on factors like Age, Health, Sum Assured, and the Term the policy covers. Different insurance companies provide different benefits and riders on term insurance to enhance the policy.

For example, Zindagi Plus by Edelweiss Tokio Life Insurance has a critical illness rider, accidental death benefit rider, etc. You can also get life cover without any medicals if going out during the pandemic is not a viable option for you. It covers an untimely demise due to Covid-19 as well.

With a correctly chosen comprehensive term insurance policy, you can secure the future of your family. It is recommended that the life cover that you choose should at least be ten times your annual salary. Ideally, it should be 15-20 times the annual salary.

Keep in mind that the sum assured will influence the premiums. Typically, the benefits of a term insurance policy are provided to the nominee only if the policyholder passes away during the policy period. If the term ends, no benefits are doled out unless a 'return of premium' plan has been opted for at the purchase.

ULIP (Unit Linked Insurance Plan)

Another life insurance product that is very popular is ULIP. ULIPs are investment products with the added benefit of a life cover for the policyholder. They are great savings tools that help you acquire a corpus and build wealth by investing it in various funds.

A portion of the premium goes into providing life cover to the insured. Unlike a term plan, ULIP offers flexibility in terms of where the money is invested and also provides maturity benefits.

This plan is ideal for you if you look to capitalize on market gains and acquire a large corpus for your family's financial future. In addition, the life cover, it will also ensure that your loved ones can live a financially secured and comfortable life.

Note that ULIPs have higher premiums when compared to other life insurance products on this list, but they also have the scope for the highest returns. Edelweiss Tokio Life's Wealth Secure+ is one the most affordable ULIPs on the market today. You should definitely check it out if you are looking to invest.

Whole Life Insurance

A Whole Life Insurance shares many similarities with Term Insurance, but some key differences might make them an attractive option for you.

Term Insurance has a shorter policy period than Whole Life Insurance, which provides cover for the policyholder's entire life. After an initial period of 3 years, you can also take a loan against your policy in case of financial strain. Whole Life Insurance provides maturity and survival benefits to the policyholder as well.

In your bid to secure your family's future financially, whole life insurance should be in the scheme of things, for the many benefits it provides to the policyholder and the long-term cover it provides for the family.

Endowment Plans

Endowment Plans are similar to a ULIP in that they provide the benefits of life insurance and savings. The main difference is the absence of an investment element in Endowment Plans.

These policies have two major benefits:

● The first is the lump sum payout to the nominees in case of an untimely demise.

● The second is the maturity benefits given to the policyholder in case of completion of the term.

Endowment plans are also different from normal life insurance plans when they have the profit clause, which assures the policyholder a higher sum assured as benefits.

They can be a lucrative investment for your family's financial security, bundled with rider benefits that enhance the policy.

TAX BENEFITS

Note that all the aforementioned Life Insurance products provide tax benefits in the form of exemptions up to rupees 1,50,000 rupees under section 80C of the Income Tax Act, 1961.

CONCLUSION

The pandemic has posed many challenges in the last two years, but facing the possibility of your mortality might be the most difficult one out of the lot. A life insurance policy can help alleviate some of your worries and put you at ease knowing that your family's future is secured.

Insurance companies like Edelweiss Tokio Life Insurance have nuanced policies that have features specific to any misfortune that comes upon you because of Covid -19. Please check out their website today, and ask for a quote. Then, choose the right product for yourself and your family today.