Life Insurance:

Life insurance is a contract between an insured (insurance policy holder) and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits.

The Importance of Life Insurance

An essential part of financial planning is creating provisions for your family and loved ones following your death. Life insurance can ensure financial security to those who mean the most to you, such as your spouse, children and dependent parents. A carefully executed life insurance policy can help prepare for life's uncertainties and give peace of mind knowing that the future of those who rely on you is secure.

Life insurance pays for immediate expenses. Bills can start accumulating fast in the event of a death. Life insurance can be used to pay for immediate expenses, such as funeral services, unsettled hospital and medical bills, mortgage payments, business commitments and meeting college expenses for children.

It's a cash resource. Life insurance gives access to cash to pay for grocery bills and other daily expenses. It also helps secure your estate by providing tax-free cash to pay estate and other obligations.

Your family's standard of living can be maintained. With the right coverage, your family's lifestyle and standard of living can be sustained, adding much needed normalcy during a difficult time.

You have a wide range of options. There are two basic types of life insurance: Term life and whole life. Term life policies offer death benefits, so if you die, you will get money back, but if you live past the pre-determined length of the policy, you get no benefits. Whole life or permanent insurance is more expensive, but these policies are open-ended and also accumulate a cash value that the policyholder can earn dividends and borrow against—or cash-in upon surrendering the policy.

Customize your policy and coverage. If you have dependent children, a spouse and parents to care for, you'd want a policy that would protect them after death. Typically, policies are opened for the breadwinner of the family, but a stay-at-home spouse's contributions are often overlooked. You might consider a policy to cover childcare, carpooling and household chore expenses in the event of a stay-at-home spouse's death. On the flip side, as you get older and children or parents are no longer dependent on you for income, you can reduce your coverage or drop it entirely.

Adequate coverage makes a difference. An old school rule of thumb is that your life insurance policy equals five to ten times your annual income. Nowadays, advisors will look at the number of dependents you have, how long they will be dependent upon you, and the lifestyle they expect to live after your death. It's not a simple equation, but in general, you will need more coverage than a typical plan offered by an employer, which usually totals one or two years of your gross salary.

You can improve your credit rating. A life insurance policy is considered a financial asset and may increase your credit score, which could be beneficial when trying to obtain medical insurance or a home or business loan.

Life insurance may be exempt from bankruptcy. Most life insurance plans will not be affected by bankruptcy and will remain intact if you claim bankruptcy. However, you'll need to confer with a bankruptcy expert, as each case is unique.

Life insurance is not a simple product. It's wise to talk to an expert who can walk you through the pros and cons of available plans and help choose coverage that works best for your individual situation, now and in the future. Western offers insurance services and free consultations.

Term Plan

Term plans are no frills products that give us very high life covers for very low premiums. But term plans do not give anything back at the end of the term (life cover period) if you outlive it. Why the term plan is so important is because, it is the most basic of all plans. Most of the other insurance plans are built around these plans or have the term plans as a part of them. As the features get added, the premium also increases.

Whole Life Insurance

Whole life insurance is a life insurance policy that remains in force for the insured's whole life and requires (in most cases) premiums to be paid every year into the policy. Whole life insurance typically requires that the owner pay premiums for the life of the policy. There are some arrangements that let the policy be "paid up", which means that no further payments are ever required, in as few as 5 years, or with even a single large premium. Whole Life insurance is the policy which gives you insurance cover till the age of 100 years. This policy is a combination of your savings and insurance.

Retirement Plan

Retirement Plans provide you with financial security so that when your professional income starts to ebb, you can still live with pride without compromising on your living standards. By providing you a tool to accumulate and invest your savings, these plans give you a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Retirement planning has therefore become critical today

Childeren Plan

Children's Plans helps you save so that you can fulfill your child's dreams and aspirations. These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style.

Saving Plan

Savings Plans provide you the assurance of lump sum funds for you and your family's future expenses. While providing an excellent savings tool for your short term and long term financial goals, these plans also assure your family a certain sum by way of an insurance cover.

Tax Benefits

Tax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free. Governments establish the tax advantages to encourage private individuals to contribute money when it is considered to be in the public interest. An example is retirement plans, which often offer tax advantages to incentivize savings for retirement.

Plan Details