Yojak’swhatsapp group is shocked to hear of their friend Amit’s death and worried about his family’s financial future. Yojak informs everyone that thankfully Amit had taken a life insurance and his family is financially secure. Life insurance provides financial security to your family in your absence. The life insurance money can be paid to your dependents as lump sum or as regular income in the event of death.

There are two main types of life insurance:

• Term life insurance: This is the cheapest kind of life insurance and is bought for a fixed term of 10, 20, 30 or 40 years. The monetary payout is made to your family only in case of death during the policy term.
• Traditional policies & ULIPs: Under these, you can get a payout at the end of the policy term incase the insured survives. But, in the event of death of the insured during the policy term, the family gets the death benefit.  

It’s advisable to add additional cover to your insurance plan such as:

• Critical illness cover
• Waiver of premium
• Accidental death & dismemberment
• Total and permanent disability

to financially aid in eventualities other than death.

Finally, the premium for a life insurance policy depends on

• Your age
• Gender
• Your Health and medical history
• Whether you smoke
• The length of the policy
• And the amount of life cover you want to buy

Life insurance has also evolved as a wealth building tool and is a tax-free investment. Death is unavoidable. Secure your family’s financial future to help them tide over difficult times.

https://www.hdfcsec.com/life-insurance