Monthly Archives: July 2017

How Can Life Insurance Become the Best Legacy

When it comes to planning for you and your family’s financial stability in the future, the best time to do it is now. For most bread-winners, it is an upmost priority to ensure that they can provide the basic needs for their family. But in an event windows 10 home key that a family’s provider would untimely pass away, there is no doubt that the surviving family members will be financially crippled. One of the best ways of at least to financially prepare your family and to somehow cope up with the family’s main source of income is for the provider to purchase a life insurance.

Basically, a life insurance is a form of agreement between an individual and an insurance company wherein a set of premium would be purchased. In turn, they will guarantee that they will provide a large amount of money for your beneficiaries by the time the provider passes away. With the help of the money that the surviving members will receive, will somehow provide the financial compensation for their loss.

However, a life insurance is not just a mere financial compensation for the loss of a family’s provider. To further understand how life insurance works for you, here are the examples:

-First and foremost, it functions as a protection for your family’s financial stability as well as their lifestyle. With the loss of the family’s income provider, it is less likely that the family can still continue the current lifestyle. Through this type of insurance, one can rest assure that the family that may be left behind can live a comfortable life.

– Secondly, it can prepare your family’s life events. For instance, you can purchase a life insurance that may potentially cover the financial needs. An example of such instance is for your children’s tuition cost for college of the family when you are gone.

– The third purpose may be as an investment vehicle. When you purchase a life insurance, it can become a risk-free investment to such that your money could potentially turn into a large amount in cases of untimely death that may be enough take care of the family.

– The fourth use is to be a key man insurance because it will protect you, your partner as well as your business. In cases that a business partner passes away, this insurance could be used to ensure that the surviving family members will have enough money to buy the share of the business thus maintaining the same income even if the original provider may no longer be around.

– Lastly, this can be used as a charitable giving as well as inheritance. If ever you have a loved one or a charitable institution you want to share what you have when you pass away, then this is the best buy windows 10 home key option to take. You can purchase a life insurance and have the charitable institution or a loved one as the beneficiary. From here, you can leave them a legacy from the money you have earned.

With the different purposes of availing a life insurance identified, the next thing left to do is to look for the right insurance company that can best provide you with a premium that best fit your budget, plans as well needs.

Taking a Home Loan? Buy Life Insurance Too

Are you planning to buy a home through means of a loan? If yes then you must have a suitable life insurance plan in the first place. Now you would say how home loan relates to life insurance. Well, there is a strong connection between the two.

Home loan is a long term liability. The normal period of a home buy windows 10 key loan hovers from 10-20 years. It is a very long period. Now just think, what may happen in case you come across a deadly incident. Will your family be able to bear such a huge liability?

Definitely, everyone needs to be positive and forward looking. There are rare possibilities that one comes across untimely death. But, it is always better to be practical and secure his family through all possible means. It is a part of your responsibility. Isn’t it?

What to do?

If you are going to take a home loan, you must also have a life insurance policy of a commensurate amount. This will be a sort of hedging against the risk. If in case you are not around, your family should be able to pay off the debt.

Otherwise, it can be a miserable situation for your family. They may be approached by the bank for confiscation of the house and this will add to their emotional trauma. So, why to leave even one per cent possibility of an unfortunate incident?

But, life insurance is expensive

Home loans run into several lakhs of rupees. In most of the urban areas, an average-size home costs anywhere in the range from Rs 40 lakh to Rs 1 crore. Most people take 60-80 per cent loan. Now, this translates into an EMI of tens of thousands.

A typical life insurance plan provides life insurance coverage of 10-15 times of the annual premium amount. Thus, if you pay Rs 50,000 as annual premium, you can expect life insurance coverage of around Rs 5-8 lakh.

Considering an instance of a home loan of Rs 40 lakh, you need to pay a premium of Rs 3 lakh a year. This is not always possible for us. It is a huge amount.

So, what is the way out?

There are options at your disposal – no need to worry at all.

Today, the life insurance industry in India brings you a viable proposition of term life insurance plan. The cost is minuscule and the benefits aplenty.

For life insurance coverage of Rs 40 lakh, you are required to shell out a premium of just Rs 4,000-5,000. Yes, that’s it.

As a responsible parent and head of family, you are rather expected to get a life insurance coverage of double your liabilities. Thus, if you require life insurance of Rs 50 lakh, then go for Rs 1 crore. Why?

The additional amount is against risk coverage of loss of income. In case of an emergency, your family can pay off the debt and invest the rest of the amount to earn interest income.

And the cost is negligible. For a cover of Rs 1 crore, you can buy a term insurance plan from Reliance Life in just Rs 9,300. HDFC Life’s Click2Protect is also available at the same cost.

Make sure that the term of your insurance plan is equal to the term of your home loan plan. The monthly cost of premium microsoftproductssettlement will be less than Rs 1,000. In return, you get a peace of mind and a sense of fulfilling your responsibility.

Economics Of Life Insurance

When you buy life insurance, you are making sure that in the event of your passing, your loved ones and dependents will be able to maintain the lifestyle they were used to during your lifetime. You can also make sure that there are enough finances to meet the future growing needs of your family. There are various microsoftproductssettlement factors involved in estimating the figure you feel is essential for the financial well-being of your family.

Calculating Economic Value

You need to estimate your life insurance needs on the basis of your economic value which means the total earnings you will be bringing into the family in your lifetime. To do so, you need to include your annual earnings at the present time, the annual increments you can expect in the future, the number of years you expect to work before you retire and the returns you expect from the investments you have made.

Family Composition

When planning your life insurance, you need to take into account the composition of your family. If you have children and other members living with you, and you are paying for their day-to-day and other needs, your expenses will be higher. If over time there will be fewer members living in your household, like when the kids move away, your spending will be lower. You will also have to consider the ages of your family members since the expenses for the upkeep of children are lower than that for adults.

One-time Expenses and Borrowing

You also need to take into consideration one-time major expenses. These will include expenses like paying the college expenses of a child, paying for a wedding, maybe a change in residence or a new car. If yours is a family that does not believe in borrowing to maintain the lifestyle they are used to, you will need to buy life insurance accordingly so that unexpected expenses can be dealt with, without getting the family into debt.

Social Security and Family Support

Your family is entitled to Social Security benefits such as survivors, dependents, divorced spouses, children, parents and retirement allowances. You can take into account this cash the family will receive when calculating your life insurance. You can also consider the possibility of non-working members of the family taking up jobs to support the family, and friends and relatives lending monetary support to the family. You may have been saving for a major expense such as buying a big house or moving into a more expensive neighborhood, and cancelling of these plans can allow the family to use these savings elsewhere.


You need to carefully calculate the taxes your family is liable to pay at present and in the future. These will include federal microsoftproductssettlement and state income taxes and also payroll taxes which are paid annually. The taxes will be calculated according to what the family has saved and the assets in which the savings have been invested. You also have to calculate the savings the family will accumulate and invest, on which taxes will be applicable at a later date.

Awareness of Life Insurance

Why do you need life insurance?

Life insurance is an important part of your financial planning. If your family’s only source of income is your salary, then you need life insurance coverage. If you are young, then you need more life cover that will last longer. You should take a life insurance for 10 years or 20 years depending on the age of your children. If you have no dependents then you will need less cover. A life insurance will give your family an income as long as they need it. It will take care of your loans even after your death. A life insurance could help to maintain your family’s standard of living and makes sure that your children have all the opportunities even after your death.

What is a Term Assurance?

A Term Assurance is an insurance policy taken for a fixed period of time. For eg. 10, 15, 20 years or more. You are guaranteed a fixed sum if you die within that period. No payment is made if you survive during that period.

What are the other types of insurances?

There are different types of life insurance policies.

a. Mortgage Protection: If you have mortgage on your home, Mortgage Protection will clear your mortgage when you die.

b. Specified Illness Cover: It gives you the money when you are still alive. It helps you pay your medical bills if you are out of work. So you can get better without worrying about your medical bills.

c. Whole of Life Cover: If pays you a lump sum whenever you die.

d. Over 50s No Medical Cover: Anyone above 50 can get this insurance policy. The advantage is that, no medical questions are asked. All you need to do is fill in the application and get immediate cover. For the same reason, the price of this cover is higher when compared to other policies.

e. Income Protection: Those who are self-employed should consider Income Protection. It usually pays you almost 3/4th of your annual income if you are out of work owing to illness or disability. This policy contains a deferred period, which means you have to show that you have been out of work for a minimum of 13 weeks.

What are the important points to consider before taking an insurance policy?

Check out the policy benefits or the sum assured on your death. You must decide on what type of cover you want. You will need Whole of Life Cover if you want cover that will pay whenever you die. Specified Illness Cover usually pays out 80% of the sum assured if you are diagnosed with a serious illness.

What are the details you need to give to take life insurance?

You have to fill in an application form giving details about your medical history and lifestyle. Depending on your age and the type of policy you are opting for, your insurance agent will ask you to get a medical certificate. You need to give details truthfully if you want your dependents to get compete benefits of a life insurance.

Is it possible to cancel an insurance policy?

You can cancel your insurance policy during the cooling off period – that is within 30 days of issuing the policy. You will get a full refund of any premiums paid.

Why Get A Life Insurance Quote Today

Life insurance is something that many of us tend to postpone. After all it is for an eventuality that is not likely to happen today or the next day. This procrastination is what gets many people and their families into trouble. Get a life insurance quote without delay.

The importance of life insurance:

In the event of your untimely demise, your family still has to pay the bills, educate the kids and pay back all the liabilities ranging from short term credit card loans to mortgages. Getting Insurance quotes is the first step in ensuring your family’s financial security.

Even when people get life insurance, many of them don’t buy adequate cover or the right type of insurance products for their needs. Getting the right policy requires some study of the available products in the market and then picking the right policies to meet your financial security goals. Getting a life insurance quote is the best way to start the analysis.

This gives you an idea about the types of products available to you and what they mean in terms of premium payments and benefits.

An overview of the options available:

There are two major categories of policies, the term insurance and whole life insurance. While term insurance has just an insurance component in most cases, whole life insurance has both insurance and savings components.

There are different types of term insurance policies. Each gives you an insurance cover for a certain number of years. Depending upon the policy, some of them give you the option to exit or renew the policy at fixed intervals.

These intervals could range from one to a number of years. Depending upon the type of risk cover they offer, the premium of these policies could increase or decrease as the years go by. Once the policy expires, all the benefits under these policies cease.

Whole life coverage on the other hand covers you for the rest of your life. These policies tend to be expensive when compared to term insurance due to two reasons. One, they involve higher risks and the risk increases with your age.

The second factor is the savings component, or cash value that they include. This cash value accrues throughout the policy period and is paid upon your death to your family.

The type of policy or policies that you should opt for depends upon your circumstances and goals. If you are confident that you will be able to pay all your debts and accumulate enough savings to support your family even after retirement, then term insurance may be enough.

If on the other hand you have dependents needing financial support throughout their lives, like children with special needs or suffering from disabilities, whole life plans could be the best for you. Most people usually have a mix of different types of insurance policies which gives them the optimal cover with minimal premium outflows.

Determining your life insurance requirements:

How much insurance cover is good enough? Again, the answer to this question depends upon your current expenditure, liabilities and anticipated future expenses and liabilities. Your life style and the kind of life that you would like to guarantee to your family also plays an important role. Here are the important factors to consider:

1. Your current monthly income and expenses and anticipated increases in the future. Your coverage should be able to generate funds that can be invested in safe assets to generate similar income levels.

2. The period that your family will need financial support. This could depend upon other earning members in the family and the likely earning members of the future.

3. Take into account your current liabilities like mortgages. Your family should be in a position to pay up the loans in case of your death.

4. Your anticipated future liabilities like the education expenses of your children.

Getting the optimal insurance cover:

The type of insurance and the options that are available to you depend on many factors. These include your age and the amount of premiums that you can afford to pay. Several other factors could also limit your choices to some extent.

The best way to arrive at the optimal mix of life insurance policies is to get a life insurance quote. Online life insurance quotes are the best because they allow you to input certain parameters and pull out the available policies for you from many different providers.

This helps you weigh your options and narrow your choices.

Whatever the method you use, don’t procrastinate. Start now by requesting a life insurance quote. Keep in mind two important things before you decide to buy any policy.

One is the reliability of the insurance company. Check out their ratings and customer service history. The second important thing is to read the terms and conditions very carefully. Life insurance is after all a long term commitment with critical implications. You certainly don’t want to go with the wrong company or pick up the wrong policy.