*Please note that the quotes shown will be from our partners

Tenets of Life Insurance

Life insurance is considered as one of the best financial instruments to meet requirements at different stages of life. It provides monetary security to your family after your demise. It plays a vital role and therefore it is advisable to understand your life insurance policy carefully to gain maximum benefits.

Let’s know how:

Define your needs- You need to identify both your short and long-term needs separately. You need different financial instruments to achieve both these requirements. For instance, endowment plans help you save funds for particular needs such as buying a house. Similarly, retirement plans offer you a steady income post retirement.

Review your insurance needs - You may have purchased the insurance policy to accomplish your different financial goals, such as child education, marriage, and retirement. It is imperative to carefully evaluate and review your insurance policies periodically to ensure that they are in accordance to your requirements. Once you settle down and have a family, you should invest in a term plan to ensure that your family continues to enjoy financial stability especially when you are no longer there to support them.

Stay invested till maturity- Life insurance policies are designed to give you maximum benefits. Market-oriented policies such as endowment, whole life policy, and ULIPs are designed to offer dual advantages of insurance and investment and generate maximum returns. Therefore, it is important to understand the benefit of continuing to hold the policy till its maturity. Also, you should start investing early to enjoy the compounding effect.

Maintain strict financial discipline- You should regularly pay your insurance premiums to keep your insurance policy active. In case you miss the premium due date, it may lead to policy lapse and your policy coverage may also get lowered. Checkout: 9 Popular Life Insurance Premium Payment Options

Opt for riders- Riders, such as premium waiver benefit and critical illness, give you additional protection by customizing the policy as per your requirements. While most of the policyholders choose them at the time of inception of the policy, some insurers offer you an option to buy riders later also to expand your insurance coverage.

Check taxation benefits- Insurance is an effective tax saving tool. You can get tax deductions on the premium paid for both the life insurance policy and riders. You should always indulge in a periodical review of insurance policies to get maximum benefits out of it.

Written By: PolicyBazaar - Updated: 19 August 2020
You May Also Want to Know About
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid’s future. However, due to time constraints or negligence, he forgot to pay its ...
LIC Online Payment - A Complete Guide
LIC Payment Process through LIC Online Portal, Banks & Cards India’s only public sector investor, LIC is the most recognized and trustworthy name in the Indian life insurance domain. With its broad variety of worthwhile life insurance inst...
How to Check PLI Status?
How to Check PLI Status? Dating back to February, 1884, PLI (Postal Life Insurance) is one of the oldest life insurers in the country. Started as a welfare scheme to provide benefits to the employees of the Postal department, PLI has really come...
LIC Login Online: Step-by-Step Login Process to LIC website
LIC Login Online: Step-by-Step Login Process to LIC website The LIC login portal is user-friendly and the customers can easily avail the online facilities at the comfort of their homes or offices from anywhere in the world. All you need to do is...
Life Insurance: Checking Policy Status
Life Insurance: Checking Policy Status Buying life insurance policy is the first step towards building a corpus amount for the future. It takes many permutations and combinations to actually choose a life insurance policy, analyzing its benefits...