Why is life insurance the best gift for your spouse? Why is life insurance the best gift for your spouse?: Thinking of gifts for your partner can som
Why is life insurance the best gift for your spouse?
Why is life insurance the best gift for your spouse?: Thinking of gifts for your partner can sometimes be difficult. Sometimes you want to give them everything you can and what they want, but often, what you give them doesn’t seem like enough. Usually think of gadgets, jewellery, clothes or other such things for your partner. But it is rare for a person to think beyond these common options for gifts.
Steps beyond the obvious can help you make the occasion more special and memorable. If you’re thinking about what to gift your partner, you might be wondering what they’ll like. You can think about what will be best for them and one thing that can be good for them is financial security.
But how do you get them financial security? There are many ways to do this. You can save money for them, invest it or do something that will give them financial security for the unexpected future – buy life insurance.
What is life insurance?
Let’s see what life insurance plans are. Life insurance is often described as a contract or agreement between the insurance provider and the policyholder. Through life insurance, life insurance is provided to the policyholder in return for a premium paid to the insurance provider.
What is life cover? This is a benefit that will accrue to the insured’s nominee in unfortunate circumstances. This is commonly known as ‘death benefit’.
Depending on the policy you have purchased, you may also get some other benefits from your life insurance plan. For example, tiered term insurance plans may come with riders that allow the insured to expect payouts from the plan when an accident results in permanent disability. Another example is term insurance which includes premium plans, whole life insurance plans or endowment plans which are known to provide maturity benefits that can be used by the policyholder.
Life insurance is one of the easiest ways to build financial support for yourself while protecting the future of your loved ones. Hence, it is one of the most useful gifts you can give to your loved ones, especially your partner.
Types of Life Insurance
Which life insurance you buy for your spouse can make a difference in your finances as well as your collective future. There are various types of life insurance policies available today. Let’s take a look at some of the commonly available ones.
Term Insurance Scheme
Term life insurance plans are one of the simplest types of life insurance plans. The main plan provides only death benefits, but the plan can be further enhanced with riders and benefits in the plan. In addition, there are various sub-types of these plans that allow you to choose one that suits your needs. If you are looking for something at low cost with a limited duration, this is a perfect plan for your partner to choose.
Whole life insurance plans
These plans provide coverage up to the age of 99 years, i.e., if the life insured survives to the age of 99 years, these plans provide a maturity benefit. These are slightly more expensive as compared to term life plans. If you are looking for a maturity benefit with lifetime coverage and are not worried about the cost, then a whole life insurance plan is the option for you.
Endowment plans offer limited tenure as well as maturity benefits. These plans can be taken for a minimum term of 10 years. These act as savings schemes. If you are interested in maturity benefits, endowment plans may be best suited for you.
This is an investment-cum-insurance plan that has a side that allows you to dip into the money. If you want to build your wealth along with life cover, you can opt for ULIP.