What is Family Life Insurance?

Most of us aim to give our families comprehensive protection with regard to financial security. Family Life Insurance is designed in such a way that it ensures the financial security of the family and in case of unfortunate event of the policyholder, their family will be able to continue with their lifestyle without compromising on anything.

Also, family life insurance also helps pay off any outstanding debts, educational expenses of the children or mortgage payments. Family Life Insurance also provides peace of mind and helps maintain the quality of life in the absence of the breadwinner.

Why do we need a Family Insurance Plan?

Family Life Insurance ensures that your family is financially protected even during tough times of life. In case, if only one person is the breadwinner of the family, this type of insurance will benefit them. It can be a source of income during your absence and the financial needs are taken care of.

Losing loved ones can be unfortunate and some uncertainties of life cannot be prevented. In such unfortunate times, insurance helps people to plan their finances accordingly. Family Life Insurance helps to cope with materialistic needs, till you can get back to your normal life.

What are the features and benefits of Family Life Insurance?

Family Life Insurance protects loved ones and provides financial security during the unfortunate demise of the family member.

The key features and benefits of Family Life Insurance are designed in such a way that the diverse requirements of the policyholder are met.  

Death cover

In case of the sudden demise of the family member or the breadwinner, the beneficiaries will receive the Sum Assured. It will be a lump sum amount that will support the family financially and also help cover immediate expenses. Additionally, the family can use it for their children’s educational expenses and mortgage payments.  

Premium

The premium for Family Life Insurance is affordable, which allows people to safeguard their family members during unfortunate times. However, the premium may differ depending on factors like age, coverage amount, policy and health. Also, the premium can be paid in flexible terms like monthly, quarterly, half-yearly and annually.  

Coverage amount

The coverage amount will vary depending on your financial requirements and annual earnings. It will allow you to choose the coverage amount and it determines the death cover of the life cover.

Payout options

Family Life Insurance will also allow you to determine the payout option, depending on the person’s financial situation.  

Renewability Option

Family Life Insurance provides the benefit to renew their policy at the end of the policy term without any additional medical underwriting.  

Types of Life Insurance Plans in India?

There are various types of Family Life Insurance available in India, which can be availed by the policyholder depending on their requirement.

Term Insurance

Term Insurance is a Life Insurance plan that provides financial coverage for a set period of time. In case, unfortunate event of the policyholder occurs within the policy term, the insurance company will pay the death benefit to the policyholder’s beneficiary.

Endowment Plans

Endowment Plan is a type of savings plan that provides the benefit of both the life cover and maturity benefit. These types of plans can benefit people who want to save money for their future and also provide a life cover, in case of any unfortunate event of the policyholder occurs.  

ULIP (Unit Linked Insurance Plans)

ULIPs are Unit-Linked Insurance Plans that provide the advantage of both investment and insurance coverage. The premium will be linked to the stock market.  

The return and the lump sum will depend on the market fluctuations. Part of the premium will be invested in the stock market depending on the policyholder’s risk tolerance and financial goals.

How to decide on the right Life Insurance Plans for a family?

There is a wide range of Life Insurance plans available for families in India. You can choose among the ones that suits your financial needs and coverage requirement. Listed below are some points to consider before choosing the right Family Life Insurance policy.

Assess your needs

Analyzing and assessing your needs is the primary step in finding the right Family Life Insurance. Considering factors like financial goals, life cover, loan repayment and other financial burden will help you to choose the right plan.

Understand the Different Types of Insurance

Understanding the type of insurance is also important to choose the right one. Term Insurance covers the policyholder for the specified period of time and the life cover will be paid to the beneficiaries in case of unfortunate demise of the policyholder.

Life Insurance provides life cover and maturity benefits, depending on the plan chosen. It also has plans like ULIP and endowment plans. So you can choose from these types of insurance coverages.

Check the Coverage Amount

Sum Assured is the assured amount that will be paid by the insurance company to the policyholder. In case, the unfortunate demise of the policyholder occurs, the sum assured will be paid to the beneficiaries. There are many online Life Insurance calculators available to calculate the life cover and the premium amount.

Boost your Life Insurance with riders

Riders or add-ons are additional features that enhance your Life Insurance. For example, riders like critical illness or personal accident coverage can be a valuable addition to your Life Insurance. These riders help you to cater your policy according to your needs.  

Read the policy document

Make sure you read the policy document fully and understand the coverages. The policy document will have the inclusions and exclusions of the plan. If you think the plan will not suit your needs or you have any queries regarding the plan, you can contact the insurance provider and get all your doubts cleared.

Why choose Shriram Life Family Protection Plan?

Shriram Life Family Protection provides Life Insurance policies at affordable premiums and you can also choose riders or add-ons that complete your Life Insurance plan. Additionally, Shriram Life Insurance provides child plans that help you safeguard your child’s dream without any financial burden.

With Shriram Life Family Protection Plan, you can also plan for your retirement, investments and also for a future with no financial burden.  

Conclusion

Life can be unpredictable, so it is important to protect our loved ones with proper insurance that suits your needs. A Family Life Insurance plan protects your family and ensures financial protection. Additionally, Shriram Life Insurance provides Child Protection Plan, Investment Plan, Protection Plan, Retirement Plan and Savings Plan. These plans provide a wide range of insurance options that help you choose the protection for you and your family.