In today’s complexities of the world when you list the financial assets on your balance sheet you may have run many things on your mind such as house, vehicles, retirement funds or financial investments

1. How Beneficial is your life Insurance Policy?
In today’s complexities of the
world when you list the financial assets on your balance sheet you may have run many
things on your mind such as house, vehicles, retirement funds or financial investments. The
one simple and essential element that should always include in your financial plan is your
life insurance policy which offers benefits that other assets don’t. Yes, today life insurance is
that asset of your life which will not only help you and your loved ones to lead a safe and
secure life till you’re alive but also when you are not in this world. By buying life insurance
you are making a considerable purchase that in many cases can prove to be worthwhile.
Some Insurance policies like whole life insurance and universal insurance present the
combined benefits of death and investment which tend to attract many buyers.
Some benefits of Life Insurance Policy
Simplicity
Buying a life insurance policy as an investment strategy makes things simpler for your life,
compared to other forms of investments. It is designed to assist people who are too busy in
their hectic and complex lifestyle be it education, work, career, growing old etc. Buying a life
insurance policy is one type of investment you conveniently plan for your future and offer
financial stability and protection to your family.
Protection
A life insurance policy offers the required protection to your loved ones in the event of your
premature death. It can offer a financial support when needed and offset the impact of
estate taxes upon your death. The death benefit can also provide surviving family members
with funds they need to live comfortably and achieve their goals.
Consistent and Safe Accumulation
Permanent life insurance policy helps in getting guaranteed cash values which means you
will always have access to the assets you accumulate.
Protection against rising health expenses

2. Health insurance plans offer the benefits of protection against critical diseases and
hospitalization expenses. This benefit has started gaining critical importance due to the
increasing incidence of lifestyle diseases and escalating medical costs.
Safe and profitable long-term investment
IRDAI, the insurance regulatory body, through various rules and regulations ensures the
safety of the policyholder's money in the growing sector of life insurance and health
concerns. Life Insurance being a long-term savings instrument, also ensures that the life
insurers focus on long-term returns and do not take risky investment decisions for short
term gains.
Mortgage Redemption
Life Insurance proves to be an effective tool to cover mortgages and loans taken by the
policyholders so that, in case of any unforeseen event, the burden of repayment does not
fall on the family.
Things to remember
Most cash value policies contain required premiums that can increase over time. This will
make the policy quite expensive for people who are budget conscious and wish to purchase
enough coverage to benefit their family in the event of their death. Although many policies
contain options such as dividends from cash accounts can be used to pay premiums but
such an instance almost always results in taking funds from the cash value or investment
account.
Secondly, for term insurance, it is not permanent and expires after a certain age or
dedicated tenure which again runs concerns in your minds. And if you have to purchase a
new policy it will be based on the then age and health in order for coverage to continue
lifetime resulting in much higher premiums or un-insurability.
Consideration
Always consult an experienced insurance agent before buying life insurance policy. It is very
important to find a life product which is tailored to the specific needs of the individual
policyholder and his or her family. To know more click here:
http://www.bajajallianz.com/Corp/life-insurance/life-insurance.jsp