Why Insurance
Almost each one of us has
bought or plans to buy life insurance. The usual process is contact an
insurance agent who helps you estimate the policy value and goes ahead and buys
the policy on your behalf. So you feel good that you now have a life policy showing
how much you worth! Take a step back before you buy that policy. Have you ever
considered buying more than one policy value you desire? There are some great
gains in doing so. These are....
During Financial lows
If you go through a situation where you are
financially constrained to surrender your life policy, you will lose the cover
for the entire policy even if you do not need the entire surrender value of the
policy. For instance if your policy's surrender value is Rs 10 Lakh and you
need Rs 4 Lakh cash, you will have to cancel the entire policy and lose life
over completely. had this policy of Rs 10 lakh been taken as 2 policies of Rs 5
lakh each, you could have surrendered just one policy. You would still remain
covered for Rs 5 lakh!
Distributing your estate
Breaking up your life policy help in this
count too. Taking the same example, instead of having one Rs 10 lakh policy,
having 2 Rs 5 Lakh policies helps allocate your estate among your children (
this is an ideal situiation if you have 2 children - each child gets proceeds
from one policy).
Taking a loan
You can use your life policy as a
pledgeable security while taking a loan. Lenders as well as the insurer usually
offers loans up to a specified percentage of the surrender value of the policy.
If you dont need a loan to the extent of the amount you are eligible for, you
will still have to offer the entire policy as security to the lender till the
repayment of the loan. During the period the policy remains with the lender, he
is eligible for all the rights to the policy. However if you break up your
policies, you need to pledge only just that many policies to raise the
necessary loan.
Tax Benefits
Section 88 of the Income Tax Act states
that premium paid on a life policy is eligible for tax rebate. The beneficiary
may be different from the premium paying person. For instance your wife can pay
premium for your policy and claim the tax benefit. Breaking up for life policy
helps in this case too. If the premium paid on a consolidated policy is higher
than the amount of rebate you need, you can break the policy to claim the
entire tax rebate. This can be done by another taxpaying family member paying
the premium for one policy and claiming the rebate.
Meeting your life goals
You can divide your life insurance
portfolio into a number of policies spread over different tenors to give you a
stream of steady income to take care of your life's financial commitments like
children's education and marriage, buying property, asving up for your old age
etc. Check out specific plans structured by insurers specifically for these
purposes.
What if you have already taken a
consolidated life policy?
Don’t despair. You can break it to pieces! Contact
your insurance agent to guide you to doing so. By paying a small sum to the
insurer, your policy can be broken up into more than one, without any loss to
you. It is worth the efforts.
Contact Us
1) If you want to Buy New Insurance
Policies than call 9360080622
2) If you need a detailed quotation from us
as to how much insurance you should really go for.
3) If you have a previous life insurance
policy and want servicing for the same.
4) Contact us on email: kspgeetha@yahoo.co.in
