Life insurance is one of the first steps towards financial planning. Before anything else, it is important to secure yourself and your family against untoward incidents. It is no more only about securing your family’s future. It comes with a lot of other benefits too. Let us have a look at how life insurance works and helps you go beyond its essential purpose.
Peace of mind
If you have a life insurance cover, you know that your family will have a financial safety net after you pass away. Of all the difficulties they will have to deal with, money shouldn’t be one. They can easily take care of your debts, if any, and of their own future with the money you leave behind for them.
Nowadays, there are term plans which also offer you a return of premium. Upon maturity, you have a sizeable lump sum which you can decide to either invest, save, or use for your bigger financial expenses.
Because of how life insurance works, you earn a deduction on your premiums as well as on the maturity amount. Your premiums are tax-deductible under Section 80C of the Income Tax Act, upto a limit of Rs.1.5 lakh per year. Under Section 10(10D), your maturity proceeds are entirely tax-free.
Life insurance also helps you in other important stages of your life such as your child’s milestones, your marriage, etc. One of the biggest benefits is assistance for major health expenses.
Health benefits of life insurance
Did you know that most Indians spend about 70% of their incomes on medicine and healthcare? Quality healthcare costs are only increasing day by day. If, unfortunately, you meet with a major accident, or disability that renders you unable to work, your family will have major financial stress. Your medical expenses along with their daily expenses will be a huge task. At such times, a plan like the iSelect+ Term Insurance will help with its Critical Illness cover and disability riders. There are two major ways in which such plans help.
- Critical illness cover
Critical illness cover includes a variety of fatal diseases. When you are diagnosed with a critical illness, the sum assured is paid in full to you. You can spend it on your treatment, and also for running the household. There are no restrictions on how you can utilise this money.
- Accidental disability riders
Critical illnesses are not the only major health condition which require major financial aid. If you meet with an accident and suffer a disability due to it, you might not be able to work in the same capacity as before. This can have an adverse effect on your family’s finances, along with medical expenses. It is hence prudent to opt for an accidental disability rider, which will provide you with the sum assured upon such incident. Since it would be a lump sum, it will be able to cover soaring healthcare costs too.
Increasing coverage option
Apart from these health benefits, there is another option that can help you with the ever-increasing costs of healthcare. If you opt for a life insurance plan with increasing coverage, it will basically allow you to increase your coverage at regular intervals in the policy term, thus adjusting for rising costs and giving you a greater amount to pay for healthcare when needed. It also means that upon maturity, when you will be older and healthcare expenses will be greater, you will have a sizable amount to not just take care of your daily expenses, but also your regular health expenses. Additionally, you can also choose to receive your maturity payout in increasing instalments.
With a better understanding of how life insurance works in more ways than one, you are now in a better position to make decisions about your policy. Have a look at some comprehensive plans such as the iSelect+ Term Insurance Plan to choose what’s best for you.
iSelect+ Term Insurance Plan
Canara HSBC Oriental Bank of Commerce Life Insurance's iSelect+ Term Insurance Plan is a wholesome plan that will provide you with a return of premium option, along with Child Support Benefit, Accidental Total and Permanent Disability, and Accidental Death Benefit riders. It has a plethora of options for customization too, with level, increasing, and decreasing cover options, and multiple payout options. All of this and more, is just a few
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