How often have you wondered about the financial security of your family when you are not around? Do you ask yourself how your children will manage finances in your absence? You are not alone. Each one of us wonders about how the absence of the bread earner in the family will affect the finances. It is in such situations that we look out for investment options that can help the loved ones maintain their life without compromising on anything.
Investors choose to purchase insurance policies in order to protect the family in their absence. Apart from looking after your family, life insurance provides a number of benefits. You do not want your family to deal with debt in your absence; the right insurance policy will help you take care of any loan outstanding.
Insurance plans come in different variants. You can invest in a plan based on your financial condition and the requirements of your family. It is ideal for the complete protection of your family in your absence. The plan will secure the future of your child and help them at every stage in life.
It helps build a corpus for the future and will shield the hard-earned savings from any uncertainty. Keep in mind that insurance companies can sometimes be difficult to work with when it comes to actually paying out the claims.
If you’re among the unfortunate ones that had to fight this battle, it’s best to consult a life insurance attorney to help you out with your claim.
Benefits of buying the family protection plan
There are great advantages of buying a family protection plan.
- Financial stability: The biggest advantage of the plan is that it draws the maximum benefit for the family. It will ensure that the family is financially secure even when you are not there.
- Tax Benefits: The premium paid by policyholders is exempt from taxation under Section 80C of the Income Tax Act. This is the biggest motivating factor for taxpayers to invest in insurance plans.
- Suitable for everyone: The family insurance plan is suitable for everyone, it does not matter whether you are rich or not. You can choose the simple term insurance plan and enjoy premiums that are not heavy on your pocket.
- Protection not restricted to death: It is important to note here that the family protection plan is not restricted to the death of the policyholder only. It covers disability as well and is called Accidental Total Permanent Disability.
- Variety of options to choose from: Investors get an option to choose from different plans based on their requirements. There are traditional plans, endowment plans, ULIPs and child insurance plans to choose from.
- Achieve long-term goals: With the right insurance policy, your child will be able to continue education in your absence. It will help meet the long-term goals and will provide for the family at every stage of life.
How to choose a plan?
Firstly, the best time to buy insurance is at the earliest possible. It does not make sense to wait for a calamity to purchase an insurance plan. The sooner you plan for the family, the better it is. Next, you need to ask yourself what you are looking from the insurance plan. If there is a specific goal you wish to achieve, you need to look for a plan which will help you with it. You need to decide whether you want a simple insurance cover or a plan with maturity benefits. You need to consider the options available to you when you are making the decision.
Now consider the premium you will be required to pay for the family insurance plan and look for any add-ons if available. With this, you will benefit from the plan in the best possible manner. Consider the future benefits of the plan and make your choice. There is also flexibility to enhance the life cover during critical stages of life. You can also choose from the specific child insurance plans that will help meet goals of education and marriage. Weigh your options and consider your requirements before making a decision.
There is no denying the fact that life is uncertain, and nobody can predict what will happen next. Hence, make a wise decision and choose a family plan that meets all your requirements and ensures that your family does not suffer in your absence. Secure your family’s financial future with the best plan.
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