In risk insurance, the payout is made in case of insurance event. Many things can be considered as an insured event, such as disability, injury, or illness. And this is when support is so important. Insurance payments serve as support. With this money, you can take time out, get cured, and provide your family with a decent standard of living during disability.
Of course, the worst can happen. It’s scary to think about it, and it is even worse to leave children and loved ones without means of support. In this case, you, as a responsible person, having an insurance policy, will provide your family with a stable future. Money will not replace you, but it is another way to show your love and care.
Therefore, risk insurance is suitable not only for those whose life is connected with a dangerous profession or extreme hobbies but also for ordinary people who take a responsible approach to the future of their families.
The payout amount is the amount by which you value your life. A million? Two million? Five million? The higher the amount, the larger the premiums, and more you or your family will receive in the end. It's only up to you to decide.
But if your task is not only to protect your health but also save money for a specific purpose, such as your child’s future or big purchases, then another type of insurance will do.
A life insurance policy also protects the insured not only against death but also with appropriate additional benefits against critical illnesses, such as heart disease and cancer, if they ever occur.
Essentially, life insurance gives your loved ones the opportunity to be self-reliant and independent. This means that your family will not have to compromise and give up their usual way of life. The payout they receive under a life insurance policy can be used for their monthly expenses or important life goals such as children’s education or marriage.
Insurance helps create affluence
Insurers’ endowment and investment programs combine the processes of creating savings and insurance coverage.
We can say that this is an upgrade of risk insurance, two in one cocktail. It combines insurance payouts and accumulation of funds, like a piggy bank or bank deposit, only cooler.
The procedure is as follows: after the first installment, you become entitled to insurance coverage for the risk of survival and risk of death.
There is such a term as survival in endowment insurance. When you have lived to a certain age and nothing has happened to you, you receive money and profit simply because the insurance contract has ended.
Saving
All life insurance plans in India offer tax benefits. The premium you pay for the policy is eligible for a tax deduction. Besides, any amount received in the event of the insured’s death is exempt from taxation.
Source: https://www.forbes.com/advisor/in/life-insurance/why-is-life-insurance-important/
Photos are from open sources.
