Why Life Insurance?

At FinOcean Wealth, we understand that every stage of life brings its own set of financial needs and goals. That's where life insurance comes into play, offering customized solutions to protect you and your loved ones through all of life's phases.

Life insurance is more than just a policy; it's peace of mind. It's a promise to your family that they'll be taken care of, no matter what. Understanding the value of a life insurance policy is crucial, as it can provide financial security and support when it's needed the most.

How Does Life Insurance Work?

A life insurance policy is essentially a contract between you and an insurance company. In exchange for your premium payments, the company promises to pay a lump sum amount, known as the death benefit, to your nominees or beneficiaries upon your passing.

What Does It Offer?

Insurance has lot to offer in terms financial security and peace of mind. It ensures that your family is taken care of in your absence. It not only helps in providing coverage for all sorts of risks, but builds an opportunity to help you grow your investments. Life insurance is a long term investment tool that helps you meet future costs like children's education expenses, retirement expenses etc.

There are plenty of life insurance plans available, depending on an individual’s needs; many of these plans can also be customized to meet their likes.

Types Of Insurance

• Term Life Insurance: The most affordable form of life insurance, premiums of plan under this category are cheap compared to other life insurance products. In the event of an unfortunate demise during the policy term, Nominees will receive the ‘Sum Assured’.
• Whole Life Policy: As in the name, this type of policy covers an individual for his/her entire life. This type of insurance covers insurance and investment components. The insurance part covers the nominee in the event of death of the policyholder and the investment component helps the holder to borrow or withdraw against.
• Endowment Plan: One main difference that Endowment Plans offer from term plans is the Maturity Benefit. This type of plan pays out sum assured along with profits under both scenarios - death & survival. The profits that are availed in such plans are the result of investment in equities & debt.
• Unit Linked Insurance Plans (ULIPs): As the name suggests, this plan is linked to the markets. This type of plan are a variant of traditional endowment plan and pay out a certain sum assured on death or maturity, whichever is earlier.
• Money Back Policy: This type of policy gives out periodic payments over the policy term. In case of the death of the policy holder, the beneficiaries get the full sum assured and if the holder survives the policy term, he/she gets the balance amount (sum assured).

Benefits Of Insurance

Most of us often tend to ignore the importance of a sound policy, thinking it is not required and that nothing could possibly happen to us. This leads us to believe that life insurance is not worth the money, but a sudden mishap or accident can leave us feeling fearful of the future—for ourselves and our families.

There is no doubt about what an individual wants—financial security and protection. For this, life insurance is the best option available. There are multiple advantages to availing a life insurance plan; let's glance at them:

• Offers Risk Cover: In case of an unfortunate event, you and your family are protected with a high-risk cover.
• Death Benefits: The sudden demise of a family member leaves the dependents grief-stricken, and during such situations, financial worries should be the least of their concerns. An adequate life cover ensures that one's family is well taken care of in case of such incidents. The insurer pays the bereaved family the sum assured along with any bonuses or profits, as applicable.

• Tax Benefits: Under Section 80C of the Income Tax Act, investments made in certain specified instruments are subject to tax rebate. Moreover, Section 80C is an effective way by which a salaried person can reduce their tax liability. Since life insurance premiums are taken into consideration, it can help you reduce your tax burden.

• Loan Facility: As per policy provisions, you can avail of a loan facility to meet any emergencies. The loan amount can be taken as a percentage of the sum assured of your life insurance.
• Assured Returns/Income Benefits: Certain policies that offer money-back benefits help in keeping your family secure with regular and timely payouts. This income helps in meeting regular expenses like rent, bills, loans, etc.
• Life Stage Planning: Insurance enables you to effectively plan for every life stage and the needs during that stage. Life insurance can be viewed as a long-term investment instrument that provides solid financial support. As per your life stage and risk appetite, you can fix and meet all your financial goals, whether it is your child's education, wedding expenses, buying a dream home, or your retirement—all taken care of.
• Safe Investment: Your money invested in life insurance is safe, and returns are paid back on time. It also fetches good returns as the money is returned to the policyholder or beneficiaries as the sum assured, either on completion of the policy term or in the event of death, whichever occurs earlier.

Why Is It Important?

Life insurance is of significant importance if you wish to protect your family or dependents from any economic hardship in your absence.

It's not an expense-many people think of it as one & chooses to completely even consider its importance. It's a very essential tool that will help you build wealth and at the same time offer complete protection to you and your family.

Single Individual

Even if you have no immediate dependents relying on you financially, it doesn't mean that you don’t need a life insurance. There are many costs that you need to factor in and which needs additional income to fulfill them. Life insurance helps you meet such expenses while safeguarding your current income

What to Buy?

There are many categories of insurance policies available in the market today. Depending upon your needs and requirement your Financial Planner will help you pick out the right one. You need to give complete details on your current financial status, along with your short term and long term goals, so that you Planner is well-equipped to make a prudent choice for you.

There are many categories like Retirement plans, Money Back Plans, Child Protection Plans, Endowment plans and much more.

Remember, life insurance is a great tool for both protection and helping you save in a disciplined manner which eventually leads to creation of good corpus. With help of your planner, fix your goals align them with your financial objectives and lead a stress free life with a financially secured future.

With Family

Unexpected passing of an individual leaves a lot of void and the surviving members are left to cope with a lot of stress and trauma. And no matter what, expenses never ceases to exist; it just piles on- be it rent, childcare expenses, loans, etc. In such scenario, loss of income would cause an immediate financial hardship and your loved ones are left struggling. Nobody wishes this upon their family, hence life insurance needs to be seriously considered.