HDFC Life

What are the Benefits of Life Insurance?

Let’s explore the various benefits of life insurance: 1 1 Death Benefit Upon the demise of the life assured the beneficiary of the policy receives a sum of money as the death benefit. Objective of death benefit is to provide financial support to the beneficiary in case of the life assured’s absence.

How Does Life Insurance Work?

Life Insurance is a legal contract between the policy holder and the insurer. Here are some aspects that will help you understand life insurance better: 1 1 Agreement Life Insurance is an agreement between the policy holder and an insurance company. The policyholder pays a premium to obtain the desired life cover as per the terms & conditions of the agreement.

Why should I buy life insurance?

Life insurance is an essential financial instrument as unlike any other investment option it provides a unique benefit of life cover. Let’s deep dive into reasons as to why one should get a life insurance: 1 1 Financial security Life insurance offers an essential benefit of financial security unlike any other investment option.

How to select the best life insurance?

1 1 Evaluate your financial needs The first and the most essential step in financial planning is to assess your financial needs that are to be covered with life insurance. Life insurance can cater to multiple financial goals such as financial protection, growth of wealth etc. thus you need to identify the goal that your life insurance will fulfill.

How much life insurance do I need?

There are several ways to assess the amount of life insurance you need. Here’s a simple and easy to remember method know as D.I.M.E. that can be applied by all to assess amount of life insurance: 1 1 Debt First you need to account for debt that you have incurred and haven’t yet paid off. These can include auto loans, personal loans, credit card payment, and any other loans.