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Life insurance is an essential financial tool for families. It provides financial security and peace of mind in the event of an unexpected death, illness, or disability. It provides much-needed financial assistance to your loved ones when you are no longer around to support them.
In this blog post, we will discuss 8 benefits of life insurance that every family needs to know, such as spouse coverage, children’s benefits, terminal illness benefits, and more. Read on to learn more about how a term insurance policy can benefit you and your family.
What is Term insurance?
Term insurance is a type of life insurance policy that provides a predetermined amount of financial coverage for a specific period of time, or “term.” Typically, this term ranges anywhere from 1 to 30 years.
The policy pays out a benefit to the designated beneficiaries upon the death of the insured person. Term life insurance policies do not include an investment component and therefore they are less expensive than whole-life or universal life insurance policies.
Beneficiaries are typically designated when the policy is created and can be changed throughout the life of the policy. Generally, there can be multiple beneficiaries, primary beneficiaries, and contingent beneficiaries for each policy.
Upon the death of the insured person, all named beneficiaries will be paid out in accordance with the conditions outlined in the policy. Life insurance is often used as an effective tool for estate planning or providing financial security for loved ones after one’s passing.
Advantages of term life insurance
Term insurance may also provide more flexibility for those individuals who have unique circumstances. For instance, many policies can be converted into whole or universal policies in order to help accommodate changing needs over time.
By researching all available options and selecting one that fits your particular needs and budget, you will ensure that you have sufficient financial protection for yourself and your family when it matters most.
1) Spouse Cover
Life insurance provides term insurance policy financial security to your spouse in the event of your death. With life insurance, your spouse will receive a lump sum payment that can be used for various needs, such as paying off debt, providing financial security, and even paying for funeral costs.
It can be a crucial source of support during a difficult time and can provide comfort and peace of mind.
At Canara HSBC Life Insurance, they offer you a secure future and complete peace of mind. With your Spouse Cover, your spouse will get financial security even if something were to happen to you. We understand how important it is to keep your family protected and secure, which is why this coverage provides your spouse with a lump sum amount on your untimely death, so they can focus on their future.
2) Children’s Benefits
Life insurance is an essential part of any family’s term insurance policy. One key benefit of life insurance is providing for children in the event of an untimely death. Through life insurance, a child’s education and other needs can be met through policy proceeds.
This ensures that even if a parent passes away, their children will have the necessary resources to achieve their goals. Get the best term insurance plan for your child’s future. Calculate the sum assured that covers your child’s education and protects them even if you’re not around. Secure their dreams today.
3) Terminal Illness Benefits
Having a life insurance policy can provide invaluable protection for your family in the event of a terminal illness diagnosis.
The term insurance policy benefit can provide critical financial support, helping to cover medical expenses, replace lost income, and offer peace of mind that your family will be taken care of.
Furthermore, the death benefit will help provide your family with the funds they need to maintain their lifestyle and continue with the plans you had in place.
Get the best term life insurance policy that provides protection against the terminal and critical illnesses, along with various riders to tailor your plan to meet your needs.
4) Burial and Final Expenses
Life insurance is a valuable resource that can help provide financial security for your family in the event of your death. One of the most important benefits of life insurance is the provision of burial and final expenses coverage.
5) Replacement Income
Life insurance can provide a source of income replacement when you are no longer able to provide for your family.
Not only can life insurance policies provide coverage for your spouse in the event of your death, but they can also provide benefits for your children and terminal illness benefits.
6) Loan Protection
Life insurance provides a valuable financial safety net for families. In the event of the policyholder’s death, life insurance can help to pay off any outstanding debts or loans that the family may have.
7) Key Person Coverage
Life insurance is a great way to provide for your family in the event of your untimely passing. Key Person Coverage allows you to protect those closest to you financially by providing coverage for a spouse, children, and even terminal illness benefits.
This type of life insurance can help ensure that your family will be taken care of if something happens to you.
8) Buy-Sell Agreement Funding
Life insurance is a valuable financial tool for protecting your family and providing peace of mind. One important way to ensure your loved ones are taken care of in the event of your death is through buy-sell agreement funding.
This type of coverage enables the surviving members of your family to purchase shares from the company at a predetermined price, allowing them to continue the business operations in a time of great stress and loss.
How to determine if you are a proposal’s beneficiary
- Check any documents related to the policy for your name, such as policy contracts and death certificates.
- Contact the company’s claim department for information about unclaimed policies. They will be able to check if you are named as a beneficiary of an existing policy.
- Look up any potential unclaimed policies in the National Association of Insurance Commissioners (NAIC) Unclaimed Property Database to see if you are listed as a beneficiary of an insurance policy
Life Insurance Beneficiary Rules
- Any individual that the policyholder has faith in may be appointed as a beneficiary.
- There are no restrictions on who may be designated as the beneficiary, however, insurers typically prefer it to be a member of the immediate family.
- If the policyholder does not designate a beneficiary or if the beneficiary passes away during the policy term, and the policy is not modified, then certain guidelines will be followed by the insurer based on the scenario.
- If there is no will that names someone as a beneficiary, then the death benefit is awarded to immediate heirs such as husband, children, and parents.
- If there is a will present then the Indian Succession Act, of 1925 will apply and beneficiaries will have to provide an indemnity or waiver of legal evidence to the insurer.
Get the life cover you need with our iSelect Smart360 Term Plan, up to the age of 99. You also have the option to get a return of all your premiums if there is no claim.
We also offer additional protection options such as Lump Sum payments for Critical Illness, Accidental Total & Permanent Disability, or Accidental Death; also offer No Future Premiums in case of Covered Critical Illness or Accidental Total & Permanent Disability if opted. Get insured today and be financially secure with me!
Conclusion
Life insurance is an important part of protecting your family’s future. It provides you with the assurance that, even in the event of your death, your family will be taken care of financially. With these points in mind, you’ll be able to make an informed decision on which life insurance policy best suits your family’s needs.
