Life insurance is one of the best financial instruments as it has a plan for every member of the family. Family life insurance covers everyone, from the breadwinner to the spouse and children, and keeps them financially secure in the long term.
Here are some of the best family life insurance plans that can protect your family in in case of any unfortunate event
- Term Insurance
One of the simplest and most common family life insurance plans, term insurance offers coverage for a fixed number of years. The insured person pays the premium for the entire policy period at selected intervals. In case of his or her death during the term, the sum assured, i.e., the insurance amount, is paid to the dependants. Family term life insurance lets you choose the policy period, premium payment frequency as well as sum assured. Some term plans even offer additional riders for critical illnesses and cover diagnosis and treatment expenses, which ensures that your savings are untouched.
- Retirement or Pension Plans
Life expectancy is increasing, which means that your post-earning years could be as long as the earning years. The expenses, however, will continue to rise and your savings may not be enough to sustain your standard of living. Retirement or Pension Plans provide life insurance for people up to the age of 99 years. The premiums can be paid for a limited period, as a one-time payment, or stretched across the duration of the policy. In case of the premature death of the policy holder, the insured amount is paid to the dependants as a death benefit. If the holder outlives the policy, this can be claimed as a lumpsum amount or as regular installments which can be used to fund monthly expenses or for reinvestment. This is the best life insurance policy for family as it cushions your golden years with long-term financial security, helping you fulfill your retirement aspirations.
- Child Plans
Your children are your priority. You worry about their future if something were to happen to you. Child plans are structured to protect the child’s financial interests. What makes them one of the best family life insurance options is the ‘waiver of premium’ feature. This provides your child with two benefits: firstly, in case of your premature death, your child immediately receives the sum assured. Secondly, the policy is not terminated; all future premiums are waived, and the insurance company pays the premiums for the policy on behalf of the policyholder and pays your child at maturity. The payouts can be claimed as a one-time amount or timed to specific milestones. The funds can be utilized towards their education, wedding or any other requirement. So, your child is completely covered and has a stream of income irrespective of whether you are there or not. Child plans can even be gifted by grandparents or other relatives.
Before choosing a family life insurance policy, consider the following factors - the number of family members, whether or not you have children, the chances of suffering from a critical illness, and your other investment and savings plans. These are all important considerations. While there are several different options for family life insurance, the above mentioned are the three most preferred ones.
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