Why Do I Need Life Insurance?

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Why Do I Need Life Insurance?

For financial security of the family.
Protection to family from financial burden due to sudden death
For retirement savings

Pro-Tip

If you buy Life Insurance at a younger age you will have to pay a lower premium. It will give you a higher payout later.

Did You Know?

There are 3 (sometimes 4) persons involved in a Life Insurance plan:

Proposer/ Payee: The person who pays the monthly or yearly premium

And

Life Assured: The person who is being insured

Let’s try to understand how this works-

Proposer+ Life Assured

If you are buying a policy to insure yourself and you are the one paying the premium, you are both the Proposer and Life Assured.

Proposer AND Life Assured

If you buy a policy to insure a family member and you are the one paying the premium, you are the Proposer and the family member is the Life Assured.

Key Terms in Insurance

Beneficiary: The person who receives the insurance amount after the Assured dies. Beneficiaries can be legal heirs and also financial institutions, like banks, where the life assured might have outstanding debts which need to be repaid.

Nominee: The person who will hold the assets and property of the Life Assured until their beneficiaries are of legal age (18 years).Your husband, wife, children, parents, siblings and partners can be named as a Nominee.

Points to remember:

Life Insurance is a financial protection plan for our family in the case of an unexpected death.
You pay a monthly or yearly premium to the insurance company
The company will pay a lump-sum amount of money when the person dies or after a set period of time.

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To learn about different types of life insurance, read on

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