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How to Choose the Right Life Insurance Plan with Axis Max Life?

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Everyone wants to take care of their family, and one of the best ways to do it is by securing their financial future. One of the prominent ways to achieve this is by buying life insurance, which provides full coverage and protection. It ensures your loved ones do not have to struggle with finances in case of your unfortunate demise. However, choosing the best life insurance plan feels difficult when you don’t know what is best.

 

Understanding life insurance, its types, and existing plans in the market can help you navigate the process and choose a plan more easily.

What is life insurance?

Life insurance is a contract between an individual and an insurance company, where the policyholder pays the premium. In return, if the life insured (whose life is covered by the policy) dies during the tenure, the insurer returns the sum assured, which is the lump sum amount specified in the policy. The sum assured helps the family manage living costs, loan repayments, or any other financial needs in the absence of the life insured. 

There are multiple plans that some even help with savings and investments. These plans help build wealth for future goals while still providing protection.

Why choose life insurance plans?

A life insurance plan helps you to protect your family financially when you are not around. Some of the prominent reasons are:

  • Financial protection for the family:

A life insurance policy gives a fixed amount of money to your family if you pass away. This money, known as the sum assured, can be used to meet their most important financial needs.

  • Tax deductions:

The premium you pay for a life insurance policy is eligible for tax deductions of up to ₹1.5 lakh under Section 80C* of the Income Tax Act, 1961.

  • Opportunities to create wealth:

Some plans, such as ULIPs, offer the benefit of life cover along with market-linked returns from your investment.

  • Financial planning:

Life insurance not only protects in the event of the life insured’s death, but it can also serve as a long-term financial goal. By starting a plan at the right age, you can prepare for different stages of life.

  • Planning for your child’s education:

For many Indian parents, saving for a child’s education is a top goal. With the right life insurance policy, you can build funds to support your child’s higher studies and secure their future.

 

*Disclaimer: Tax benefits under Section 80C of the Income Tax Act are available only under the old tax regime. 

Types of life insurance plans

  • Term Plan

A term plan gives only protection. If you pass away during the policy period, your family gets money. If you live till the end, no money is given.

  • ULIP (Unit Linked Insurance Plan)

A ULIP offers protection and investment in one. One part of your premium gives life cover. The other part is invested in market funds. Returns depend on how those funds grow.

  • Child Plan

A child plan helps save for your child’s future needs, like education. If something happens to the parent, the plan continues, and the child gets the money.

  • Endowment Plan

An endowment plan gives both protection and savings. If you pass away during the policy term, your family receives money. If you live till the end, you get a lump sum amount.

Steps to choose the right life insurance plan

  • Check Your Financial Needs

Think about your family’s daily expenses, loans, and future goals, like children’s education. This helps decide how much coverage is required for complete protection.

  • Choose the Plan Type

Decide between pure protection plans, such as term insurance, or savings and investment-linked options, like ULIPs, child plans, or retirement plans, based on your financial goals.

  • Check Premium Affordability

Select a premium amount that fits your budget. Paying regularly is important; missed payments may result in lapses and a loss of protection.

  • Look at Policy Duration

Select a policy term that aligns with your goals, such as until retirement or until your children finish their studies, to ensure comprehensive coverage during key life stages.

  • Consider Special Options

Look for add-ons, such as riders for accidents or illnesses. If you are an NRI, see if special term insurance options are available for you.

Why is Axis Max Life Insurance a good option?

Choosing a life insurance plan can be tricky when there are multiple options available in the market. Some of the leading companies, such as Axis Max Life Insurance, can be a good choice as they offer a wide range of plans designed to meet an individual’s requirements. Whether you are looking for pure protection through a term plan or want savings and investment options through ULIPs, endowment plans, or retirement plans, suitable choices are available.

They also offer term insurance for nri​, which helps you take care of your family in India if you pass away. Their claim settlement ratio of 99.70% makes them a very good choice if you’re looking for companies that can provide you with the best life insurance plan to secure your loved one’s financial future.

Conclusion

Life Insurance is a shield providing security for your family’s financial future. If you choose the right plan, your loved ones will have the financial means to cover living expenses, loans, education, and retirement.

Your needs, budget and goals will help you determine which plan to get. Axis Max Life offers a trustworthy insurance service that benefits users with its extensive range of plans and high-quality service. Decide your requirements and then explore and choose the plan that fits you and your requirements best. 

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