Life Insurance

LIFE INSURANCE: WHAT IS IT?

An arrangement between a person and an insurance company is referred to as a life insurance policy. According to the contract, the individual (policyholder) regularly pays an insurance premium to the insurer. In return for the premium, the insurer guarantees that, in the case of the policyholder's passing, the beneficiary they have specified will get a certain amount of money (the death benefit).

The primary objective of life insurance is to provide financial stability for the policyholder's loved ones when the policyholder dies away. This might help with things including funeral costs, outstanding debts, and continued living costs.

A few forms of life insurance plans include whole life insurance and term life insurance (more on this later in the article). Term life insurance only provides coverage for a specified period, but Whole Life Insurance provides eternal protection and builds cash value over time.

The terms of the policy, the age, health, and lifestyle of the policyholder, as well as the sum of the death benefit and the premiums paid by the policyholder, are all subject to change. However, in general, younger and healthier policyholders will pay lower rates.

Overall, because life insurance plans have exclusions and restrictions, it is important to read the policy conditions and understand what is and is not covered before purchasing the policy.

WHY DREAM CORPUS FINANCIAL SOLUTIONS FOR LIFE INSURANCE

At Dream Corpus Financial Solutions, we understand the importance of protecting your family's financial well-being. Life insurance acts as a safety net, ensuring that your loved ones are taken care of financially in the event of your untimely passing.

Dream Corpus Financial Solutions is dedicated to helping individuals like you navigate through the complexities of life insurance options. Our team of experts will work closely with you to understand your unique needs and goals, tailoring a life insurance solution that fits perfectly into your overall financial plan.

Don't leave the future of your loved ones up to chance. Invest in life insurance with Dream Corpus Financial Solutions today and secure a brighter tomorrow for those who matter most to you.

HOW DREAM CORPUS FINANCIAL SOLUTIONS HELP YOU TO SELECT THE APPROPRIATE LIFE INSURANCE SUM ASSURED

Since the quantity of financial protection your family will receive in the case of your untimely death depends on the life insurance sum guaranteed that you choose. we consider the following factors while determining the appropriate sum assured for your life insurance policy.

we Identify your financial goals and the amount of security that your family will need to survive without you. Before choosing a quantity that provides enough protection, consider the costs of having children, getting married, and having other future obligations.

Before deciding on a number that will meet your obligations and we help you ensure that your family can continue to live comfortably, take into account your current income, costs, and existing debts, such as a personal loan, vehicle loan, or house loan.

Finally, while choosing the appropriate sum assured for your life insurance plan, we take into account your age and general health. Younger and healthier policyholders can often request a bigger sum insured.

INDIA'S HISTORY WITH LIFE INSURANCE

• Here is a synopsis of India's history with life insurance.
• Around the start of the 19th century, life insurance made its debut in India under the British Raj.
• The Oriental Life Insurance Company was established in Kolkata (formerly Calcutta) in 1818 and was the first life insurance company in India.
• Other European companies followed, including the Bombay Life Assurance Company and the Madras Equitable Life Insurance Society.
• The Life Insurance Company of India (LIC) was established in 1956 after the government nationalized the life insurance business in 1947.
• In India nowadays, there are several public and private life insurance companies.

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WHAT ARE THE VARIOUS LIFE INSURANCE PLANS KINDS AVAILABLE IN INDIA?

To satisfy the various needs of people, a variety of life insurance policies are given in India. The most popular forms of life insurance plans are shown below.

Term Life Insurance

For a specific period, the policyholder pays a predetermined premium. The insurance company pays the death benefit to the chosen beneficiary if the insured passes away within the term. As a term insurance policy does not mature, it expires, and the policyholder is not entitled to any reimbursement if they live over the policy period. The simplest and most affordable kind of life insurance policy is this one.

Whole Life Insurance

In exchange for the lifelong coverage provided by this form of insurance, the policyholder makes recurrent premium payments for the remainder of their life. After the policyholder passes away, the chosen beneficiary receives the death benefit.

Endowment Plans

Plans for endowments offer savings in addition to cash assistance. In this case, the policyholder pays the premium on time every month throughout the insurance. A lump sum payment will be made after the insurance if the policyholder survives the whole period of coverage. The beneficiaries will get the death benefit if the policyholder passes away before the policy's maturity date.

ULIPs (Unit-linked Insurance Plans)

ULIPs offer both life insurance coverage and investment options. The premium payments made by the policyholder are invested in a variety of funds that they can choose from according to their investment goals and level of risk tolerance.

Pension Plans

This insurance plan keeps giving the policyholder a steady income after retirement. Throughout their working careers, the insured consistently pays premiums, and after retirement, the insurance firm continues to provide the policyholder with a regular income. The beneficiaries will get the death benefit whether the policyholder passes away before or after retiring.

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5 FACTORS THAT MAKE LIFE INSURANCE CRUCIAL

Financial security

Your life insurance coverage will provide financial security for your loved ones in the event of your untimely demise. The insurance provider will pay out a death benefit that may be utilized to cover a variety of costs to ensure the financial security of your family.

Mind at ease

Knowing that your loved ones will be financially secure even after you pass away might help you feel less worried about their future.

Tax advantages

By way of deductions under Section 80C and tax-free death benefits under Section 10(10D) of the Income Tax Act, life insurance contracts offer tax benefits.

Income replacement

If you are the family's primary provider of income, life insurance may be able to replace some of your lost earnings. In this way, the quality of life for your family may not be significantly impacted, and they will still be able to meet their financial obligations owing to the death benefit of your life insurance policy.

Debt Repayment

Unpaid debts including mortgages, auto loans, and credit card obligations may be partially covered by life insurance. This can assist keep your family from experiencing financial difficulty.