Insurance Policy- A Must Have To Safeguard Ourselves

In such a fast-moving world, there is a high risk of uncertainty which could lead to huge losses for a person. Be it any accident leading to huge damage to the vehicle or to the health of a person, uncertainty prevails everywhere. This has led to a rise in need of insurance. Insurance refers to protection from any financial loss which a person may have to pay for. This method helps in saving a lot of money and management of risk. A person who provides insurance is known as an insurer and works as an agent to the insurance company. A person who buys insurance is known as the insured or holder of the policy.

Under the process of insurance, the policyholder i.e. Insured has to pay a certain amount every month or year depending upon the policy taken by them. Whenever any uncertainty prevails, the insured is paid with a certain amount which is mentioned according to the policy however, this amount will only be paid if the insured has fulfilled the terms and conditions of the policy. There is also a huge variety of tailor-made customized plans which are according to the needs of the customer. A large number of companies have begun to support people by taking a limited amount from their monthly incomes and provide with a specific amount of coverage by which the family could easily bear future goals even when the insured is not there. You can also buy term insurance from various websites providing insurance policies.

Following are some of the benefits of life insurance usually observed in daily life:

• Peace of mind: the Life Insurance policy covers the risk of loss of life which provides peace of mind to an individual.
• Financial security: It leaves the family with financial security even when the earning person of the family is not more.
• Secured family: It makes the family of the insured secure.
• Savings of tax: According to the Income-tax Act 1961, premiums paid for life insurance are eligible for tax deductions under Section 80 C.
• More savings: It deducts a specific amount from the salary earned by the person which also helps in saving a lot of tax.
• Stress-free life: The financial security so provided by these insurance policies help in leading a stress-free life as it provides a death cover to the family.
• Death cover: Life insurance policy covers the loss of a person.

The above advantages are enough to describe why more and more people are engaged in buying these insurance policies.

There is a simple procedure that is required to be followed while purchasing a life insurance policy. Usually, there are many agents hired by the insurance companies which provide a step to step information on regard to it. However, there are many people who wish to buy these policies online. 

• Firstly, they have to log in to these websites by filling their details and submitting the important documents as are required by them. 
• After filling up all the details, there would be a payment mode that would be asked for the customer and then after making the payment online a soft copy of the policy would be sent to the customer as approval by the insurance company.

Various documents which are usually asked by the insurance companies are as follows and are must to be provided by the customer as early as possible:

- ID Proof

- Income Proof

- Age proof

- Address Proof

There are many doubts when asked for the particular age at which a person must buy a best term insurance plan. There are a number of methods that are taken into consideration and the major one depends upon the goals and what age of life the person is at which would also pay way to secondary benefits like saving of taxes and making future investments. 

However, it is always advisable to buy these policies at a young age because there are many premiums that are being offered at such age and there are fewer responsibilities since the person is unmarried. Also, there is a rapid rise in the number of diseases as there is a rise in the age of a person which increases the premium on insurance as well. Low premiums at a young age often create the demand to buy these insurance policies. Apart from it, newly married people and people with kids have different preferred methods of insurance policies. 

It is also considered to be important for a senior or retired individual to have an insurance policy that would help them live a comfortable and relaxed life after retirement. These policies are often recognized as a major replacement to the income which acts as a support to the family. Hence, this insurance policy acts as a major boost for loved ones which helps them feel secured financially. Keeping the above points in mind would definitely help the person to know that at what stage it is beneficial to buy these insurance policies.

There are some particular factors which are important to be kept in the minds of customers before buying these insurance policies. 

• The first and foremost is the advance payment which means that the policyholder is required to pay the premium on these insurance policies in advance. This advance payment depends upon the policy so taken by the customer and terms and conditions of these companies. 
• Another word which policyholder must be familiar with is grace period. It means that the payment of premium is a specific schedule that is to be taken very seriously by the policyholders. The failure to pay the premium might happen due to unforeseen circumstances. Considering this fact, the insurance companies provide a grace period of a minimum of 30 days or might differ from company to company. 

It is a must for a person to get the insurance policy as early as possible. The insurance companies have got thousands of happy clients who have looked after the loss of their loved ones and the sole earning member of the family. They help in achieving the long term goals of the family as well as taking expenditure on the education of the children.