fam_1_br (13).jpg fam_2_mob (14).png

Understanding Life Insurance

  10/25/16 4:36 AM

Product Enquiry

Blog Title

514   | 

If you ask any person whom you know about whether they know about life insurance, he will say yes. But if you ask that very same person whether he understands life insurance, chances are that he may try to convince you that he does even though he may not. Most people understand life insurance as an investment avenue like a fixed deposit or a tax-saving one. Far from this, the primary objective of life insurance is risk coverage. So, when you buy life insurance, you actually ensure that your family is protected financially after your demise. You pay premiums regularly and in return the insurer promise to pay a designated amount if the event for which you’ve covered yourself occurs.

Death benefit

If you, as a bread winner of the family meet with an unfortunate demise, you may leave behind a lot of costs and liabilities like education expenses of your children, outstanding home loans or just simply maintenance costs of living. Suddenly, your family may be faced with the scary prospect of having to cope with the financial burden of life after your demise. A life insurance policy will ensure that your family stays protected after your demise as the insurer will give your family a lump sum or monthly pay out. This is called as the death benefit and this is the primary goal why a person should buy an insurance policy in the first place.

Along with this, as a secondary objective, a person can look at insurance as an avenue to build up some corpus that will serve as retirement income. Life insurance isn’t designed as an investment as prima facie it won’t give you short-term returns, say, in a year or so. For life insurance to give you returns or benefits, it is necessary that you stay invested for a longer period of time.

Also Read:

Importance Of Your Income

Life Insurance For Ageing Adults

The Right Reasons To Buy Term Life Insurance

Total Secure+ With Bigger Shield For Added Protection

Edelweiss Tokio’s Innovative Move In Digital Insurance Space

Know More About Edelweiss Tokio Life Insurance : https://www.edelweisstokio.in

 

Related Blogs

Related Assets

609x334premiumpayingterm
# insurance-glossary

Premium Payment Terms | Types | Benefits

29 Apr 2023

10844
why-should-mobile
# term-insurance

Why To Pay Term Insurance Till 60 Years

29 Apr 2023

8995
what-is-life-insurance-mobile
# life-insurance

Life Insurance 101 A Comprehensive Guide

29 Apr 2023

1651
fam_2_mob%20%2821%29
# investment-options

Tax Benefits & Savings With ULIP Plans

12 Jul 2023

780
imp-of-life-insurance-mobile
# life-insurance

Understanding The Importance of Life Insurance

02 May 2023

2749
tax-benefit-mobile
# ulip

Tax Benefits on ULIP Plan for NRIs

29 Apr 2023

5026
endownment-policy-mobile
# life-insurance-simplified

Significant Features of an Endowment Policy

05 Apr 2023

2527