Life insurance is something many people prefer not to think about. Thinking about your eventual death can make it difficult to enjoy the life you have left. However, making sure your family is financially secure after your death is one of the kindest things you can do for them.
Another reason people avoid purchasing a life insurance policy is because the process can be confusing and intimidating. Partnering with an experienced policy agent can make the experience seamless and easy. They can, for example, explain the best policy for your situation.
ULIP life insurance plans are among the more popular plans. The ULIP Plan is a combination of life insurance and investment. A fraction of the premium is earmarked for investments in equity and other funds the policyholder chooses.
Life Insurance is Important, But Not Everyone Has It
Big life events like getting married or having kids often make people ponder their future. Both events are prime opportunities to explore your life insurance options, as you’re now financially responsible for someone other than yourself.
Reportedly 75% of all residents of India don’t carry life insurance, despite India being one of the most populated countries in the world. What if you aren’t a resident of India, but your family resides there? You can still buy life insurance as a non-resident.
5 Facts About Life Insurance
Once you understand how life insurance works and its importance, you will feel more secure in purchasing a policy. Here are 5 things people don’t know about life insurance:
1. Life insurance isn’t about putting a monetary value on a life. Life insurance isn’t about how much money your life is worth. It’s about ensuring your beneficiaries have enough money for unexpected and expected expenses, such as bills and burial costs. Most deaths are sudden, and the last thing your grieving family needs to worry about is money.
2. Not all life insurance plans are the same. There are generally two types of life insurance plans – term and permanent. Term policies cover specific time frames, such as 10 years, 30 years, etc. Permanent life insurance continues for the policyholder’s entire life.
3. You may need more coverage than you expect. One of the biggest mistakes people make with life insurance isn’t not getting enough coverage. A policy that covers only burial and other assorted bills of the deceased doesn’t provide a financial safety net for beneficiaries.
4. Life insurance plans are flexible. Once you decide on a life insurance plan, you’re not locked into that plan. Life insurance plans can be adjusted for pretty much any reason.
5. You don’t have to be young to get the best rates. Yes, young people in good health do often get lower life insurance premium rates than older people. But that doesn’t mean you can’t get a good rate at an advanced age.
Life Insurance Offers Security to Loved Ones After You’ve Passed Away
The very idea of a life insurance policy can be depressing, but it shouldn’t be. Rather, it should give you a sense of peace and security in knowing that your loved ones will be taken care of after you’re gone.