Why Life Insurance is more Profitable for Common man?

We have a lot of queries and doubts when purchase a Life Insurance policy. Here, I am giving the important features and advantages of Life Insurance. These features and advantages of Life Insurance not only clear the doubt of a common man but also proved that how life insurance is Unique and most important and unavoidable part of a person life. There are many options available for a common man to invest their money, but Life Insurance not only unique but also very useful for common man, because its cover risk of Life.

Death Benefit:-

The life insurance provides benefit against the risks of your life & provides your family or nominee the insured amount or coverage in case of your unfortunate demise.

Survival/Maturity benefit:-

Apart from the simple death benefit you also get the maturity benefits or survival benefits wherein you get the sum assured plus the returns at the time of maturity, there is also an option of periodic withdrawals of your invested amount.

Investment& savings:-

Apart from the life cover, the life insurance also has prospects of providing a vehicle for investments & saving for your future needs. With different insurance plans like simple endowment plans, whole life plans, ULIPs, you have the option of saving for your retirements through pension plans or saving for your children future needs by investing in Insurance child plans wherein you can invest your money depending on your risk profile.

Tax benefit:-

You can save tax up to Rs. 1 lakh on Premiums paid for Life Insurance Plans under Section 80C. And maturity amount also is tax free.

Riders:-

The riders are special benefits given to the policy holders in addition to the life insurance cover wherein you are charged with some extra premium e.g. Accelerated death benefit rider, waiver of premium rider, disability income rider, accidental death rider etc. the most popular rider is Accidental death rider.

Premium payment option:-

You have the option of paying premium yearly, quarterly, monthly & you also have the option of single time premium payments where you have to pay one time. It depends on plan to plan of Life Insurance.

Plans as per needs:-

You can avail Insurance plans as per your needs & requirements, if you want to save for your child you can go for children insurance plans providing you with returns at certain important milestones of your children’s life like their education, wedding etc. If you want to save for your retirement you can invest in Pension plans either in ULIPS or in simple Endowment plans depending upon your risk appetite.

Loan option:-

In some life insurance policies you can also take loan against the life insurance policies, your eligibility for the loan amount depends on the type of policy, the premium amount, the term of the policy and the number of years you have paid premium for.

Paid-up of the Policy:-

In traditional policies, if you have paid the premium at least for three years and after that you are not able to pay premium due to your financial crises, the policy is enforce for paid-up value of your sum-assured and you will get maturity benefits of paid-up value.

Advantages of Share Market with Risk Coverage:-

Only Life Insurance can give you advantage of share market with Risk coverage of your Life through ULIPs product and from September 2010, IRDA has made customer friendly ULIPs plan and it is more profitable for common man.