Benefits of Life Insurance with Shriram Life
How is Life Insurance an essential part of your Financial Plan?
Life Insurance is a financial tool that helps plan for your family’s future. It is a contract between an insurance company and a policyholder. The policyholder will pay the premium to the insurance holder. In turn, the insurance company will compensate the policyholder in case of the unfortunate demise of the policyholder. Life Insurance also has savings plan, which allows the policyholder to save for their child, which can be used for their higher education. So Life Insurance allows individuals to choose according to their needs and also maximise their savings. Life Insurance has various plans starting from Term Plans to savings plans. Shriram Life Insurance has designed products in such a way that it will cater to every individual’s needs.
Factors to Consider While Buying Life Insurance
Before opting for Life Insurance, it is important to check for certain factors and choose the plan that suits your requirements.
Policy coverage
Policy coverage is an important factor to consider while choosing your Life Insurance. The coverage amount and the premium should match your financial requirements. Always consider both your current and financial requirements and choose the desired coverage. Inadequate coverage and a high premium amount can distress your current and future financial requirements.
Premium Payment Option
Life Insurance Plans usually provide monthly, quarterly, half-yearly and yearly policy paying options. It is suggested to choose a policy that provides flexible payment options. For individuals who can afford a lump sum payment, a single premium payment option is also available.
Policy Period
The policy period is the total number of policy tenures. To know the policy tenure, subtract your current age from the age at which you wish to fulfil your goal. Additionally, the premium to be paid will depend on the chosen tenure and the longer the period is the lower will be the premium.
Terms and Conditions
Terms and conditions play a major role in Life Insurance Policy. So it is important to read the terms and conditions fully to determine whether it suits your requirements. Sometimes, claim rejection can become a surprise if you do not read the terms and conditions of the Life Insurance.
Claim Settlement Ratio
The claim settlement ratio indicates the settlement process of an insurance company, which will be released as an annual report. The report will also give the number of claims settled out of the claims received by the insurance company in a year.
Riders
Life Insurance riders provide complete coverage and cater to individual requirements. So it is important to read all the available riders and choose the one that completes your plan.
Who will Require a Life Insurance Policy?
Life Insurance is a requirement for all as it safeguards people during unforeseen events and ensures financial security during the time, they recover from emotional loss.
Parents
New parents or parents with a growing child might require funds for their children. With Life Insurance, parents can secure their child’s future against uncertainties.
Married Couples
Life Insurance can be a safety net for the surviving spouse and provides financial assistance during the golden years of their life. This provides the financial strength, during the absence of the partner.
Retired People
Retired people require enough financial support during their golden years. Life Insurance can help them spend their golden years in peace and provides a regular source of income.
Breadwinner of the Family
Being the sole breadwinner of the family can be sometimes overwhelming. Life Insurance can be an income replacement when the unfortunate demise of the breadwinner occurs. The compensation can be an income replacement.
How to avail more benefits on Life Insurance?
People get the maximum benefits of Life Insurance, by choosing the right plan that suits their requirements. The Life Insurance Plan should align with your financial goals and ensure that the plan fits your future requirements. Riders like Critical Illness Cover will also help complete your coverage. If you are unsure of the coverage, consult your financial adviser. They will explain you about the plan and the suitable options for you.Also, make sure to track all the products that are released on your insurance company website. The companies tend to update their plans. This will help you get the maximum benefit out of the Life Insurance Plans.
How should different people take Life Insurance?
Young Adults
Start with affordable, flexible coverage
Home Owners
Ensure coverage for mortgage debt and future goals
Married Couples
Choose policies that cover shared financial responsibilities
Pre-Retirees
Balance coverage with investment growth
Parents
Opt for substantial coverage and consider riders for education and income protection
Retirees
Focus on estate planning and long-term care options
Frequently Asked Questions
Should I invest in a money back plan?
A money back plan can be suitable for investors who are looking to meet their short-term financial objectives since it provides a pay-out at regular intervals during the premium payment term of the policy along with life cover. There are some money back plans that provide a lump sum payout at the end of policy term.
How risky is it to invest in mutual funds?
A Money back plan can be suitable for investors who are looking to meet their short-termfinancial objectives since it offers a pay-out at regular intervals during the premium payment term of the policy along with life cover. There are some money back plans that offer a lump sum payout at the end of policy term.
What is an endowment plan, and should I buy it?
A Money back plan can be suitable for investors who are looking to meet their short-termfinancial objectives since it offers a pay-out at regular intervals during the premium payment term of the policy along with life cover. There are some money back plans that offer a lump sum payout at the end of policy term.
What are some tax-saving investment options for me?
A Money back plan can be suitable for investors who are looking to meet their short-termfinancial objectives since it offers a pay-out at regular intervals during the premium payment term of the policy along with life cover. There are some money back plans that offer a lump sum payout at the end of policy term.
Why is buying Life Insurance important?
Life Insurance is vital for ensuring your family’s financial security if you’re no longer around. It covers debts, living expenses, and future goals, providing peace of mind that your loved ones are financially protected.
What is the sum assured in Life Insurance?
The sum assured is the guaranteed amount paid to beneficiaries upon the policyholder’s death or at policy maturity.
What types of Life Insurance are best suited for seniors?
- Premier Assured Benefit Plan: Provides comprehensive lifelong coverage with guaranteed benefits, making it ideal for seniors seeking both protection and assured payouts.
- Assured Income Plan: Provides regular income benefits and a lump sum at maturity or upon death, well-suited for seniors who need a steady income stream along with coverage.
Are there any specific riders or benefits that seniors should consider?
Yes, seniors should consider riders such as accidental death benefit, which adds extra coverage for accidental deaths.
How are Life Insurance Premiums calculated?
Life Insurance Premiums are calculated based on age, health, coverage amount, policy type, and term length. Older age, poor health, higher coverage, and longer terms increase premiums, while the type of policy (e.g., term vs. whole life) also affects costs. Insurers use these factors to assess risk and determine premium rates.
What is a grace period for Life Insurance?
A grace period for Life Insurance is a specified time frame after the premium due date during which you can make a payment without losing coverage. Typically lasting 30 days, this period allows you to avoid policy lapse if you miss a payment, ensuring continued coverage and protection.
How do I file a Life Insurance Claim?
To file a Life Insurance Claim, notify the insurer of the policyholder's death and complete their claim form. Submit required documents, such as the death certificate, policy details, and identification. Provide any additional proof requested by the insurer and follow up on the claim status to ensure a smooth process.
What is the Life Insurance Payout?
The Life Insurance Payout is the amount the insurer pays to the beneficiaries upon the policyholder's death or at policy maturity. It includes the sum assured plus any additional benefits or bonuses, providing financial support to cover expenses and secure the beneficiaries' financial future.
Can I cancel my Life Insurance Policy?
Yes, you can cancel your Life Insurance Policy, but be aware of potential consequences such as loss of coverage and any surrender charges or penalties. If you have a permanent policy, you may also receive the cash value accumulated. It’s important to review the policy terms and consult with your insurer before making a decision.
What happens if I stop paying my Life Insurance Premiums?
If you stop paying Life Insurance Premiums, your policy may enter a grace period (usually 30 days) during which you can still make a payment to avoid lapse. If premiums remain unpaid beyond this period, the policy will lapse, leading to loss of coverage. For permanent policies, you might use accumulated cash value to cover premiums temporarily. Check with your insurer for options to reinstate the policy and potential consequences.
