In this unpredictable world, the most important thing you may do is secure your family’s financial future. Life insurance will serve as a safety net for your family, ensuring that, in the unfortunate event of an accident, they are not left with burdens. A life insurance plan gives you a holistic way of securing your family’s future and creating financial resilience with time.
What is Life Insurance?
Life insurance is a contract made between the owner of the policy and the insurance company. In case the owner of the policy dies during the duration of the policy, the insurance company undertakes to provide a pre-set amount of money, known as the sum assured, to the beneficiaries. This money is what assists the beneficiaries in dealing with enormous financial liabilities like loans and other bills.
Types of Life Insurance Plans
Term Life Insurance: It is the easiest and also perhaps the cheapest kind of life insurance. This type of life insurance covers a particular term, such as 10, 20, or 30 years. The death benefit will then be paid to the beneficiaries if the policyholder dies during the term.
Whole Life Insurance: The term informs you that it will cover the whole lifetime of the policyholder. It also has an investment aspect since one will be able to save for cash value as years go by.
Endowment Plans: These are a kind of combination of insurance and savings. They offer assured coverage during a selected period of life, where the sum assured is paid as a lump sum at the end of the policy term whether or not the policyholder is alive.
ULIPs: This is the unit-linked insurance plan, which does a kind of unit-linking of insurance with an investment experience. A small fraction of your premium goes to the life cover and the rest is invested in equity, debt, or hybrid funds according to your choice.
Why Do You Need a Life Insurance Plan?
Financial Security for the Family: The highest benefit that the implementation of a life insurance plan will bring about is financial security that will be afforded to your family in case you die.
Long-term Savings: Most insurance policies regarding life provide savings. It comes in the form of either an end or a whole life plan and saves for a future event, be it paying for college, a home, or retirement.
Debt Repayment: With a life insurance plan, your family will be able to pay off outstanding debts in your name, such as mortgages or personal loans. By doing so, your family will not have to worry about financial liabilities during your absence.
How to Choose the Best Life Insurance Plan?
Coverage Amount: The amount to be covered has to be determined. The thumb of the rule is to ensure that the sum assured can at least fetch 10 to 15 times your yearly income. It would thereby make sure that at the time of your death, your family has enough resources to sustain their lifestyle besides paying all expenses.
Policy Term: In case you purchase term life insurance, then the selected policy term must coincide with your financial needs and liabilities. For instance, if you have a mortgage that spans 20 years, you can choose a term for your policy that will last at least 20 years.
Premium Affordability: While ensuring sufficient cover is of utmost importance, premium outgo also needs to be sustainable in the long term. You can get these premium calculators through the HDFC Life Insurance App and find out what balance you need to achieve between coverage and affordability.
Riders and Add-Ons: It is obvious that there are many riders that a life insurance plan might include to add some extra protection, such as critical illness cover, accidental death benefit, and waiver of premium.
HDFC Life Insurance App: Key Features
Straightforward purchase of policy: It lets you browse through all the life insurance plans in existence, provides a comparison of each of their features, and finally buys a plan that best suits your needs.
Management of policies: Once you have chosen your life insurance policy, the app will provide you with a management of all the aspects of your chosen policy. You can check out the details, pay premiums, and download necessary documents with a few clicks.
Premium payment: There are different modes for paying, which this app will make handy for you. You can even automate reminders to never miss a single payment.
Claim Support: The application provides detailed support in terms of claiming the insurance. In case of a claim, your beneficiary can raise it and monitor it without much hassle most of the time.
Premium Calculators: In case you are not very sure about how much you might be covering, there is a premium calculator in the application. This gives an estimate depending on how much you require in terms of finance and coverage.
24/7 Customer Support: HDFC Life Insurance App offers customers the opportunity to seek solutions to their queries or problems in relation to life insurance policies 24/7.
How to Get the Most from Your Life Insurance Policy
Review Your Coverage Frequently: Life situations change over time and so do your needs. Thus, review your life insurance plan now and then to ensure it meets your current coverage requirements, especially after significant changes in life, such as marriage, a child’s birth, or a home bought.
Riders: It is possible to incorporate critical illness cover as well as accidental death in the rider for better enhancement. Riders guide to finish the policy tailor-made according to the customer’s specific needs by covering the risk.
Accurate Information: Carry on updating the beneficiary’s information. In this way, everything goes all smooth while the amount of payout reaches the right hands at the time of a claim.
Conclusion
A life insurance plan is much more than an insurance plan. It is an undertaking to secure your family’s financial future. There is security that those close to you will be taken care of if anything happens to you. HDFC Life has always made it easy to get and monitor life insurance thanks to its digital tools, like the HDFC Life Insurance App. Be it term cover, whole life, or a savings plan, the app lets you get and manage the policy easily.
