“How does life insurance benefit my family?”

Buying a life insurance policy today is like buying a future financial guarantee for your family. A financial guarantee which insures that family receives a sum of money, in case of an unfortunate event on the life of the insured person. It is therefore a unique financial product- it pays your family when they need it the most, and thus is different from other savings or investment plans. Buying a life insurance is actually buying a security for the future dreams and aspiration that one has for his family, and hence the peace of mind. The key benefits of life insurance for you and your family are

1. Financial protection: Life is a journey through different stages and with changing life stages we get higher responsibilities- like marriage, children. As a person gets married and has his or her own family, his or her dreams start broadening- dreams for your spouse; for your kid’s education; for a better future. While you earn and save to fulfill these future dreams, Life insurance protects these dreams and ensures that they realize, in case you are not around. So, it provides financial protection by paying the insurance amount to the family.

2. Long-term nature: Life insurance is generally a long-term product. Simply because your dreams and aspirations for your family and your children are long-term, any product which provides financial protection to such of your dreams should also be long-term. As such, when you buy a life insurance product today you provide the financial protection to your family for 10,12, 15 years or even more.

3. Payback benefits: Life insurance products also provide payback or savings benefits. This means that in addition to financial protection to one’s family in case of an unfortunate scenario of the person not being around, it also pays back survival benefits incase nothing were to happen to the person insured.

There are other benefits offered by life insurance products, which include; flexibility to pay your premiums as per your convenient frequency depending upon your own cash flows; choosing your life insurance cover amount as per your needs; and choosing the tenure of the product, as per your horizon.

Next week- “How much life insurance do I need?”

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