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How Insurance Helps You Cover Your Assets

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A financial burden on a family due to certain misfortune is a very common scenario especially in terms of providing a secured shelter, caring for the children and providing special health care needs. In scenarios where you have huge liabilities like a business loan or a home loan, insurance is a must. Hence to protect your family from an unfortunate event you must opt for a term insurance policy.

Having insurance today is a lot more than security. It gives you and your family a financial cushion to rely on. Our lives have turned uncertain more than ever and being prepared for the worst is the safest thing one can do. Insurance can even help you cover your assets and assure a roof over your family in the most unfortunate hours. To choose the right insurance for you and your family, talk to your financial advisor to get the best suit for yourself.

Term insurance is a type of life insurance policy with the least risk and complex terms and conditions. This is best situated for people with a low income who need a large cover to secure their family’s future financially. Here are certain benefits as to why you must opt for term insurance policy especially if you have a home loan to take care of –

1. Simple and Quick Term Insurance: –

There are a number of plans you can opt for. The most commons ones are the Cash value plans and the term insurances. Cash value plans are considered as very complex in nature. It has a huge risk and a lengthy procedure is involved as compared to a term insurance policy. With term insurance policy you can simply pay the premium and get covered for a specific term chosen. 

The term insurance is often a preferred option for a lot of us since it is simple and the claim procedure is quick and hassle-free. This simple and hassle-free procedure can save you from an unfortunate situation and save-guard your family from any debts per se.

2. Flexible and Low Premium Plan with High Returns: –

Tern insurances start from nominal premium plans and have a significantly higher return that can help you cover your assets in times of atrocities. The best part of having term insurance is that you can opt-out of a term insurance policy anytime you desire and there is literally zero risks of saving elements in these policies. 

The premium amount is also very nominal which you can either pay these premiums on a monthly or a quarterly or half-yearly. There are options for annual payment too, as per your choice. You can easily pay premiums of your term insurance just like the EMIs you pay for your housing loan but mich lesser premium and higher return. Feasible isn’t it?

3. A Large Sum Assured: –

Assets are one hefty liability and to save your loved ones after you from any such liabilities, having insurance can be of great help. You can opt for a large assured sum also known as the maturity value. The maturity amount is the amount that you would be paid after the completion of your insurance tenure. 

It is long term insurance with a nominal premium regardless of your low income. The cover is huge as compared to the premium you would be paying. It is apt for you if you have a huge liability like a home loan which can be paid off easily with surplus sum left in hand. It will not only help you safeguard your assets but also have surplus sum left with you and your family.

4. Low Income? You can still get a low premium, high return insurance –

It is never too early or late or early to buy insurance. The right time is now! You may be young or someone with a lot of liabilities with little to no cap for investment. What could be a better investment than an insurance plan? If your earnings are low and you have large debts such as home loans, business loans, car loans, etc. you must surely buy insurance! So after your dismissal, such financial burdens can be cleared with the help of the assured sum payable to the beneficiaries. Check out Shree Balaji Investment Solution to get the best suit for yourself.

You can choose your premiums to be a low-cost premium and pay it in your preferred spaces regardless of your low income. Nothing can be wiser than getting insurance if you have a low income and a lot of liabilities. After all, who does not wish to have a secure and warm financial cushion!

5. Tax benefits: –

The first and foremost step of investing is by saving your money! Tax can take up a considerable amount of your income and if you wish to save it from going in vain, buying insurance can help you here too. Nominal premium is paid in a term insurance policy with certain taxes but it must be noted that these are included for tax benefits u/Sec 80C. 

You can claim while filing your Income Tax Returns to get certain exemptions. Insurance is not a liability but an Investment! An investment that can save your family from any sort of burden after you.

6. Convertible: –

Certain inexpensive term insurance policies can be converted to cash value policies as and when the capacity to pay the premium increases. With easier convertibility, you can convert your term insurance into a whole life insurance policy. So if you take up a hefty housing loan later in life and are worried about your liability after you, you can get higher cover by converting your term insurance into your life insurance.

Lastly to conclude it is very important for one to secure their family from financial burdens due to an untimely death, especially if they are the sole breadwinner to the family. Term insurance policy helps to clear large loans such as housing loans. It would be a wise decision if one opts for a term insurance policy having a home loan.

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