Investing in a life insurance policy is definitely considered as a very beneficial step to safeguard the future. The favorable monetary return that is guaranteed through these policies is truly unbelievable. It is however unworthy of thinking it as a wasteful investment. Though in many cases, the monthly or the timely premiums may prove to be somewhat like an excess burden upon the shoulders of the investor, yet the results reaped from these policies is always overwhelming.
In order to ease the burden from the shoulders, you may even plan to go for small amount of investment of life insurance coverage. However, the benefits at the end will certainly depend on the ratio of investment that you had made in the earlier times; the more you settle as premium, the more capital returns you would get at the end.
In addition to this, you would also be entitled to get the cost of treatment for certain illness (as laid down in many policies). Life insurance policies have always been a trusted source of investment that guarantees some capital saving for sustenance of the members of the family, in case the insurer dies. This comes as a huge benefit (in terms of money) for the members of the family when the insurer falls prey to a premature death.
Types of life insurance policy
There is no guarantee of what would come across our way in life; so does any mishap or death. Therefore, it is very essential to secure our lives. The insurance policies are the best possible ways that we can invest upon, to secure our lives and through them, the benefits shall be enjoyed by the members of the families and the beneficiaries also.
There are mainly two types of insurance policies that secures the life and future of the investor as well as the beneficiary –
Permanent life insurance
Term life insurance
Permanent life insurance policies – These types of policies are being entered into with the whole lifetime being in its purview. In these cases, the money is generally paid as premiums, through a considerable time. These policies not only provide benefits by providing the amount of capital along with the interest accumulated, to the beneficiary after the death of the insurer; but also help the insurer to enjoy the capital after successful completion of the period of investment, in case they are still alive. These policies also have a huge tax-benefit upon them.
Term life insurance – These insurances only cover the life risk for certain stipulated period viz., 5 years, 10 years, etc. The premium is somewhat lower than the whole life insurance policy, yet they cover every type of life risk under their purview. However, there are several disadvantages associated to this type of policy. These policies are very hard to apply for after crossing at least 60 years of age (in most cases). The beneficiary or the insurer will not get any money in return (including the capital investment), in case he or she survives after the completion of the term of the policy.
In any case, it is very useful to invest in a life insurance policy, since there are several advantages associated with it. Even, it also acts as a capital investment for the future of the investor, and also for the beneficiaries.