Life insurances are the way to save your future financially. All life insurance companies can give you financial confidence that your family will have financial stability in your absence but life insurance will provide funds when needed or in case of emergency. An insurance agent or financial professional will provide you with a financial plan that will include various insurance products, policy loans and will explain to you the living benefits of policy's cash value. He will provide various life insurance quotes for long-term care as well. A medical exam may be conducted as well. Life insurance policies ensure that your future will be secure and safe financially. It is basically an agreement with your life insurance company. What are the benefits of Permanent life insurance policies? \tCover for health expenses –In case of emergency, you can use your health insurance in which you can cover final expenses and medical bills in case of hospitalization and for critical terminal illness treatment. Life insurance companies issue you a medical health card which you can use anywhere under some protocols. There is also an accelerated death benefit as well. \tGuaranteed income – Many insurance companies provide you with a guaranteed policy's death benefit such as a sum assured amount which is payable on happening of the event like a funeral, cremation costs. \tReturn on investment – Term Life insurance policies are much better than other investments. The money invested in life insurance covered all risks and the returns are safely paid back during payout. \tLoan options – It also helps to take a loan. The loan amount can be taken in the percentage of the cash value assured under policies depending on the policy provisions. \tTax benefits – Insurance policies are tax-deductible and are tax free under section 80C of the income tax act. Under this section, the investment made in the specified instruments is subject to rebate. \tPromotes saving – Unlike other investments, insurance policies promote savings along with a lot of benefits. \tRiders – Riders are the additional advantages you can add up to your insurance policy. These options allow increasing your insurance coverage. \tRetirement planning – You can plan insurance for a secured retirement. As they have annuity-based life insurances plan. This becomes your retirement income as well. \tPeace of mind – All of us have some financial liabilities, in those cases life insurance provides you peace of mind. What exactly is life insurance? Life insurance is a contract between a policyholder and an insurance company where the insurer promises to pay a sum of money in exchange for a premium. In many policies, you are paid an amount called maturity benefit at the end of the policy term. Many people take universal life insurance for college education, credit cards and to compensate for estate taxes. Variable life insurance is much life insurance with an investment component and provides you with cash surrender value as of underwriting. In case you aren't happy with your purchase, you can cancel your policy. Life insurance plans can be of two types: \tPure protection – Pure protection insurance plan is designed to secure your family in your absence. \tProtection and savings – Protection and savings plan is designed for your long-term plans like buying a house, medical treatment, and many more. Types of life insurance policies: \tEndowment policy – The endowment policy comes with an extra benefit where the policyholder will receive a lump sum amount in case it survives until the date of maturity. All the details of the term policy are the same and also applicable to the endowment policy. \tWhole life policy – In the whole life policy, the policyholder has an option to partially withdrawn the sum insured. The policyholder also has the right to borrow sum against the policy. Moreover, this policy can extend up to the whole life to be insured. \tTerm insurance plan – A term insurance plan is for a fixed period of time which means a policyholder can take this plan for 10 years, 20 years, or 30 years. This policy will only be beneficial only on the occurrence of the event. This policy is quite cheaper than other insurance plans. \tPension plan – As the name describes, the money collected in the form of the premium is accumulated as assets and give money back to the policyholder in the form of lump-sum depending on the instruction of the insured. \tUnit linked insurance plan – This policy build wealth in addition to life security. Premium paid into this bifurcated into two parts, the one is the purpose of life insurance and another purpose is building wealth. This plan partially offers to withdraw the amount. Reasons why life insurance is a crucial plan \tIt prevents the loan burden as it is safe and all your loans can be repaid without the risk of your family losing an asset. \tYou will avail of annual tax deductions. \tWith annuity-based life insurance, you can plan a secured and safe retirement. \tYou can secure your child’s future and you can give them the future you want just by life insurance plans. \tFinancial protection in case of sudden illness or health issues. Some myths about life insurance Myth 1: you and healthy people do not need life insurance. It totally depends on the person whom you are saving for and what for and what advantages they will get when the policy gets matured. Myth 2: some life insurance policies are beneficial after the policyholder dies. If the policyholder is alive they might get less lump sum after the mature policy. Myth 3: people who want to save tax. Life insurance policies are only for tax savings. Myth 4: only well-off people can afford life insurance as they are quite expensive to maintain. Myth 5: if you want life insurance, you have to get it at an early age because older people cannot buy life insurance coverage. Difference between life insurance and general insurance. As the name describes, life insurance is for life when the policyholder passes away due to an unfortunate event and their nominee/spouse can get financial security. In some cases, it also serves as an investment tool. Life insurance covers all the life security but meanwhile, general life insurance covers health, car, travel, home, and many more. The general insurance insures the asset for like damage due to natural disaster or anything theft etc. There are many types of general insurance like home insurance, motor insurance, travel insurance, health insurance. Things to consider for life insurance \tGives them clearer information – Your medical history and all your personal data must be presented clearly to the insurance company and don’t try to hide information when filling out the insurance application form. Missing information can lead to cause problems while claiming for insurance. \tRead term-conditions – While filling the insurance form you can read all the terms and conditions carefully. Make sure to read it and completely understand the information before purchasing an insurance policy of your choice. \tResearch – As there are many policies. You have to research each and every policy so you can get more benefits once your policy will mature. \tConsider premium payment – Many insurance policies provide premium payment options like annual, semi-annual, or on a monthly basis. Moreover, you can choose from a schedule that will allow you to make a premium payment. \tLock-in period – After buying an insurance policy, some people are not happy with that so in case the insurance policy gives you the frame time of 15 days in which you can return the policy to the insurer. How to get more benefits and value when buying life insurance The cost-effective way to buy life insurance is when you are younger and healthier. Life insurance companies generally give low rates to the younger ones. Because they tend to have a longer life expectancy and they are likely to less diagnosed with a serious disease. Importantly, they like to pay premiums over a long number of years. You should also find out about other ways to control your policy costs. \tPurchasing a joint policy for you and your family member. \tPurchasing a whole life insurance policy that accumulates cash values. \tGetting insurance at group waste through your employer To sum it up, life insurance is a small investment that makes your loved ones protected financially. Obviously, we should be prepared for unseen circumstances.