Tuesday, 13 September 2022

Benefits of Life Insurance

  NewTips.Info       Tuesday, 13 September 2022

What is life insurance?

In life insurance and all other insurances, the contract is between the insurance company and the beneficiary. The agreement is subject to all legal validity, limitations . The main objective of life insurance is to make people's lives safe and beautiful. Because if the person's life is damaged, the life insurance company gets a one-time payment .

What is the benefit of life insurance?

What is life insurance? As much as we all need to know this, it is more important to know the benefits of life insurance . Many of us have misconceptions about life insurance. We think this is a work in progress. But no, the age of people is increasing but the time is decreasing day by day. People can die at any time. So with life insurance, if a person dies due to any reason, his family will get a certain amount of money. And for those who have only one earner in the family, life insurance is very important.

No one wants to die in this world. Every human being fights for survival. But in this world. That which has creation, has its destruction. Humans will also die in the same way. So we should take life insurance so that our loved ones can lead their lives without financial problems.

Life insurance has many advantages as it provides you with special help in case of emergency. As a result, you and your family can be prepared in advance to face any unexpected disaster. Life insurance has several advantages. It is mentioned in sequence below.

1. Post-death benefits

If any unforeseen event happens to the insured, resulting in loss of income to their family, the insurance company compensates them in the form of death benefit. Appointed candidates get the promised full amount and bonus accrued over a specified period of time.

Apart from providing death protection, many life insurance plans also offer monthly income benefits. Such insurance is an excellent benefit for individuals who have reached retirement age and whose income is declining.

But while getting life insurance be careful to evaluate the features and benefits of several plans and select the best one for your needs to provide the best protection.

2. Return on investment

Renowned financial advisors suggest that everyone should invest in a life insurance policy. Not only to provide financial security to the family when you are not there, but also to get excellent return on investment.

Additionally, life insurance is a safer financial instrument when compared to other investment options. The money you have invested in the insurance will be fully paid back to you as guaranteed money at the end of the term or after the death of the insured.

3. Tax benefits

A significant life insurance benefit is the tax benefit. If you are a salaried employee and purchase a life insurance policy, you may be eligible for a discount.

4. Loan facility

When you need money in an emergency, you can take a loan against life insurance coverage. Almost all major insurance companies now offer loan facilities against insurance to policyholders.

Depending on the terms of the policy, you can borrow a certain proportion of the cash value of the policy or the sum assured. So before you contract for insurance, know the loan policy with the insurer well.

5. Correct financial planning decisions

It's important to plan your financial decisions carefully as you move through life's stages. Life insurance can help you in just this case. You can use various term life insurance benefits to provide financial support to the family in case of your untimely death.

This will not only help them fulfill their financial responsibilities, but it will also facilitate a financially independent lifestyle without disrupting their lifestyle. It will help immensely in various important occasions like marriage of sons and daughters, paying for schooling of Panar children and building a dream house for post retirement life.

6. Guaranteed source of income

Another benefit of life insurance is a guaranteed source of income. Your family feels financially secure in your presence. Because you earn regular income to meet their needs. The earnings you earn help pay off debt (if any), house rent, daily bills, children's education and other household expenses.

But what if you suddenly leave this world? Some life insurance policies provide regular payouts, which can cover the loss of income due to the death of an earning family member.

7. Business Security

Currently there are several life insurance companies that offer a facility with their insurance policies. If you bought the policy and run the business, your business partner can buy a share of the policyholder after the policyholder's death.

In this case, the business partner has to sign an agreement with the life insurance company and the proceeds after selling the shares will be paid to the nominee of the policyholder. It must be noted that the dependents or nominees of the policy holders do not get any stake in the company.

How to do life insurance?

Know about the benefits of life insurance, now let's know how to do it. To buy the right life insurance, you need to understand what type of insurance you need and how much insurance premium you want to buy. Because the higher the premium, the higher the amount of money you will receive after the expiry of the term or at the time of compensation.

But remember, just the amount of money received does not mean that it is profitable for you. There are several other things that you need to consider, such as premium policy, return policy, tax policy, nominee policy, maturity benefit etc.

First you need to decide how many years of insurance you want and how much premium you will pay every month. Currently there are two types of life insurance you can get. One is term insurance and the other is life time insurance. Apart from this, know about the coverage and other benefits of the policy.

Remember, it's an asset you're doing for the family. So don't be fooled by the ads or agents of just one particular insurance company, do your own research to see which company is offering you the best offer. Make a decision by contacting the insurance office directly without taking insurance from a local insurance agent.

After taking the final decision, keep your own documents like national identity card, driving license, passport, proof of source of income and nomination papers etc. Finally sit with the insurance agent or officer fill the form with required information and pay the first amount of premium.

Things that are important to know before life insurance?

At present we consider depositing money in the bank or debiting it as safest. But to receive bank services or open an account, you have to go to the bank and wait in line. On the other hand, insurance companies have specific agents. They go door to door and convince people to insure. 

But many people have negative ideas about insurance. Harassment or other problems to get money after expiry. Before insuring it we will know these things:

1. Read the complete terms and conditions of the insurance company before taking life insurance. If you do not understand yourself, take help from others.

2. Learn how to deposit life insurance or life insurance premium. Know what to do when life insurance expires.

3. Know in how many days you will get the money after expiry. And also know that addiction will pay you.

4. Find out what the legal recourse is if the insurance company doesn't get the money you want on time.

5. Know the legitimacy of the company.

Life insurance fraud?

You might be thinking about the near future and depositing premium money every month from your hard earned income. But suddenly you find out that your insurance agent is a fraud and he is taking the premium money of many others like you.

This kind of incident is happening frequently in our Bangladesh. By pretending to be an insurance agent or opening a fake insurance company, many fraudsters are stealing people's hard-earned money by offering more benefits at lower premiums.

So before buying any insurance check their background, authenticity, agent authenticity, office authenticity, company reviews and their website. It is best if you can see everything yourself to be sure. Don't lose everything to a flashy advertisement or the lure of higher profits.

Last word

In this long discussion we have tried to present the benefits of life insurance and other important information. Also detailed about strategies to survive insurance fraudsters. So don't delay and get down to work now.

Because a right decision on your part will provide financial security to your family in case of any future accident. Remember, this decision of yours will help your family even in your absence and you will be in their prayers and memories every moment.

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