One of the most important things you can do as parents are to ensure the financial welfare of your children in the event of your death. Life insurance is the best way to rest assured that your children will be taken care of if you die. Although we never like to think of that kind of thing happening, it does.
What is Life Insurance
Life insurance is a policy that you can enter with your insurance company, which promises a certain amount to your beneficiary(ies) in the event of your death. Usually, a spouse will name the other spouse as well as their children as beneficiaries of the policy. As part of the agreement with life insurance, your insurance policy will be a monetary value, that you will in return, pay a monthly premium for. Premiums usually depend on your age, gender, occupation, medical history, and other factors.
Other types of life insurance may provide benefits for you and your family while you are still living. These policies can accrue a cash value on a tax-deferred basis and can be used for future needs such as retirement or your childs education.
Do I Need Life Insurance
Earning an income allows you and your family to do many things. It pays for your mortgage, buys cars, food, clothing, vacations and many other luxuries that you and your family enjoy. However, certain situations can cause you to lose your income, and those who depend on you also depend on your income. If any of the following statements about you and your family are true, then it is probably a good idea for you to consider life insurance.
1) You are married and have a spouse.
2) You have children who are dependent on you.
3) You have a parent or relative who is aging or disables and depends on you.
4) You have a loved one in your life that you wish to provide for.
5) Your 401K retirement plan, pension and savings are not enough to insure the future of your loved ones.
What Are My Life Insurance Options
Four basic types of life insurance that can meet you and your families needs:
Term Life Insurance
This is the least expensive type of life insurance coverage, and at least at the beginning, the simplest. Term life insurance policies do not accrue cash value and are fixed over an extended period - usually one to 0 years, and they can be renewed. This life insurance policy pays the beneficiary of your policy a fixed amount in the event that you die in the period that your policy includes. The premiums of term life insurance are lowest when you are young and increase as you get older
Whole Life Insurance
This type of life insurance is similar to term life insurance, as well as provides cash value. Over time, whole life insurance generally builds up a cash value on a tax-deferred basis, and some even pay its policyholders a dividend. This type of life insurance is popular, doe to the cash value that is accessible to you or your beneficiaries before you die. Used to supplement retirement funds, or to pay for your childs education, whole life insurance should be used for protection, rather than for accumulation.
Endowment Life Insurance
An endowment policy is essentially a life insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survives the policy term. This maturity amount can be used to meet various financial needs such as funding ones retirement, child education and/or marriage or buying a house.
ULIPS - Unit Linked Life Insurance Plans
This type of life insurance is designed for people who want to tie the performance of their life insurance policy to that of the financial market. The policyholder gets to decide how the money should be invested, and your cash value has the opportunity to grow more rapidly. However, if the market is poor, your life insurance policy death benefit will be poor. As with whole life insurance and universal life insurance, you may withdraw against the cash value. Be reminded that withdrawals of this life insurance policy will be deducted from the cash value.
Products Recomended
ICICI Prudential – Signature Plan
A Financial Solution of 21st Century. Multi-Faceted, Multi Goal Oriented & Most Versatile and Cost & Tax Efficient Investment Option designed especially for our exclusive & preferred class.
Key Benefits of Signature:-
- Choice of premium paying term (5 yrs or 7 yrs or 10 years or Regular pay)
- Choice of 12 funds and 4 portfolio strategies to suit your investment needs - Equity / Balanced / Debt .. Longer the Term Higher would be your returns..
- Choice of switching between funds : profit booking by way of free unlimited switches from equity to debt or debt to equity.
- Whole Life Option : Enjoy all the policy benefits till the age of 99 years
- First time in the history of ULIP the Return of Total Premium Allocation charges (ROTPAC).. Get the premium allocation charges added back to your fund value at the end of 10th year and thereafter every 5 years of policy term.. Just imagine if you choose the Whole Life Option how many times will you receive the ROTPAC..
- Value Benefit : Get 5% of the premium added to the fund value in 2nd and 6th year depending on your plan option.
- Wealth boosters every 5 years starting 10th year.. More bonuses added to your fund value..
- Systematic Withdrawal Plan : Get Tax Free Money at regular intervals from your fund value as per your financial needs.
- Life cover will be 10 times of your premiums.
- 100% tax free returns under section 10(10D), No LTCG applicable.. No TDS applicable.
- Tax Rebate under section 80C on premiums paid..
- Maturity benefit : Flexibility of receiving the maturity as lumpsum or through structural payouts using settlement options.
TATA AIA DIAMOND SAVINGS PLAN
Guaranteed Income Plan – TATA AIA Diamond Savings Plan
Product Overview – With “Guaranteed Income” post premium paying.
Non-Linked Participating Individual Life Insurance Savings Plan. Every individual has different needs at different stages of life. At Tata AIA Life, we believe in protecting your dreams at various stages of life without compromising your needs through financial resources. You do not have to think twice to live your dreams.
We present to you, Tata AIA Life Insurance Diamond Savings Plan, a limited pay insurance plan that meets tomorrow requirements along with protecting your loved ones. Investing in this plan will help you fulfill your medium and long terms goals, such as a second income and retirement planning.
Diamond Savings Plan Key Features
- Receive GUARANTEED INCOME* after premium payment term;
- Get vested Compound Reversionary Bonus and Terminal Bonus#, if any; on maturity or on death
- Flexible policy term & premium paying term
- Get life cover for the entire policy term;
- Enhance your protection with optional Riders1;
- Eligible for tax benefits2 under Section 80C and 10(10D) of the Income Tax Act, 1961, as amended from time to time.
*Provided the policy is in force.
Please feel free to call back for any queries or questions.
IRDA CODE
ICICI PRUDENTIAL LIFE INSURANCE - 01367713
TATA AIA LIFE INSURANCE - 4813931
