Why you do not need Life Insurance? If you fall under any of the categories mentioned below, you can skip Life Insurance and say good bye to Life Insurance Agents,
Only if you do not fall in any of the above category, you need Life insurance and workout what should be your adequate life insurance.
Life Insurance is a contract by which you can protect yourself financially against specific losses by paying a premium for a specific term. Since each one of us, during our lives are faced with numerous risks - failing health, accidents and any eventuality , our instinct drives us to cover ourselves against those risks. Though an insurance cover can't protect you against the emotional losses arising out of these risks, it softens the economic crisis that usually accompanies these losses. It can partially cover your future value and compensate the dependants to take care of their rest of life. It can help them to pay off the housing loan, car loan any other loan and maintain the current standard of living, take care of education and marriage expenses of kids.
Simply put, life brings with it many surprises, both pleasant and unpleasant. By taking a Life Insurance Plan one can ensure that he / she is better prepared to face uncertainties in number of ways and can plan to leave behind a certain guaranteed sum of money at an uncertain time.
Offer high death benefit at low premium but no maturity benefit. Premium return policy or premium guarantee plan policy. There are term plans which returns back the premium paid at the end of the plan without any returns on the premium.
Popular and widely accepted products like Endowment, Whole life, Money Back and Pension plans with/ without guaranteed Maturity benefit fall under the category of Traditional Plans. Periodic payment of certain percentage of sum assured is made at regular intervals as premium and the Sum Assured is payable at Death / maturity. Whole Life plan is a permanent insurance plan with a limited payment option and it provides guaranteed death benefit as the insurance is covered till age 100. Premium is higher than term plan but cheaper than normal endowment plans.
Unit Linked Insurance Plans (ULIP): ULIPs offer a unique combination of security from life insurance and earnings from investments along with various funds options. Like any traditional plan, ULIP also addresses various future financial needs which may come up for an individual, like Child education, Marriage, any financial goals arising in the Medium term, Retirement, etc.