How An Investment in Life Insurance Can Brighten Up Your Life This Diwali?

18th October 2017
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Diwali is the festival of lights and new beginnings. It is probably one of the biggest festivals of India, cutting across castes, creeds and religions. It is the time when people come together forgetting their personal and cultural differences.

Diwali, also known as Deepavali, is one of the most important, hugely anticipated and immensely cherished festival celebrated across India. Its original name, Deepavali, has its origin in Sanskrit, which means “Rows of Light”.

The banishing of darkness here is two-fold, literal as well as symbolic. This symbolism applies to all aspects of life. Be it banishing the darkness of illiteracy with the light of education, or banishing the darkness of future uncertainties with the light of sound investment in a Life Insurance policy.
Importance Of Diwali
The festival of Diwali cuts across religions and creeds. For Hindus, it is associated with the return of Lord Rama to Ayodhya, after gaining victory over the demon-king Ravana and his 14 years of exile.

It is said that on that day, he was welcomed back with rows of earthen lamps lit throughout the kingdom.

Since then, Diwali has been associated with the symbolism of victory! Of good over evil and light over darkness.

A New Beginning
Even in modern times, Diwali feels like a fresh start to life. We buy new clothes, new jewellery and exchange sweets and gifts. Even shopping for Diwali is a big occasion, an event which is planned throughout the year. Shopping for Diwali is in itself a reason to get together and have fun.

It is this auspicious time for which we wait to begin new, life-changing projects, be it a new house, a new startup or even an important investment. For most, it is the perfect time to make new beginnings.

This festival marks the perfect time to make a difference in somebody’s life with a life-changing gift.

The Perfect Gift: A Secure Future For Our Family
For most of us, the ultimate goal in our life is to provide a stable and secure financial future to our family. Consciously or subconsciously, all our actions and efforts are directed towards this prime directive.

How exactly can you ensure your family’s future? Different people will have different answers for this. But, there will be a common underlying theme, it is all about money. And a substantial amount of it.

There are various ways to ensure that you collect a boatload of money for ensuring your family’s future security.
● Park your money in a bank and wait for returns which dribble into your account in the form of interest. This is one of the safest ways, but the returns are miniscule.
● Invest your money in stock market and earn high returns. But, you also face the uncertainties of a volatile economy.
● Invest money in Government instruments like PPF or something similar and it will provide you steady returns on maturity. However, inflation will ear away a majority of the benefits.

All these avenues have one thing in common. They focus on giving maximum returns after a fixed period of maturity.

So, what happens when your family is plunged into a crisis, by the loss of the chief breadwinner?

The Life-Changing Investment
Diwali spiritually signifies the victory of light over darkness, good over evil, knowledge over ignorance, and hope over despair. It is the perfect occasion to make some positive changes which are in tune with the Diwali spirit of victory over darkness.

Victory over death is the ultimate life-changing victory there is. Not literally, but in spirit. As we have established thus far, a secure future for your family and loved ones is the ultimate goal in your life. Doesn’t it make sense to achieve that before it is too late?

Life insurance is the only investment which pays out fully, in case of your untimely death.

Life insurance is the biggest plan ‘B’ of your life!

Diwali presents the perfect opportunity to spread the light of peace of mind into the darkness of an uncertain future. Life Insurance is that wonderful life-changing beacon, which has the power to transform the future and make it brighter and secure.

Types of Life Insurance Policies
Like any good investment, a Life Insurance policy offers a whole buffet of options. There’s a life insurance policy for everybody, based on their needs. Let us take a closer look at the types of life insurance policies available in order to make an informed decision.

1. Endowment Plans
These plans are perfect for people who want to create savings, along with an insurance policy. These policies come with a specified maturity period, which is pre-decided by the insurer. In case of an unforeseen event like death or permanent disability, during the duration of the policy, the beneficiaries receive the full assured sum of the policy. It the policy matures before that, the insured receives agreed maturity sum in full.

2. Unit Linked Insurance Plans
Unit Linked Insurance Plans or ULIPs in short, are financial instruments which when used intelligently, gives you the best of both worlds. It combines the characteristics of a market linked instrument and life insurance policy. Part of the premium goes into buying life insurance cover while the remaining part of the premium is invested in an asset class (equity/debt), based on one’s choice. Asset class investment is made after deduction of known charges.

3. Term Insurance
A Term Insurance Policy offers coverage for only a set period of time. If the insured dies or suffers permanent disability, during the tenure of the policy, the beneficiaries will receive benefits to make up for loss of income or unpaid debts left behind. The types of plans determine the payout in case of full or partial disability. However, if the insured survives the duration of the policy, it lapses and no payouts are made.

4. Money-back or Cash-back Plans
In these plans, a portion of the agreed upon and payable sum assured is returned to the insured by the insurance company. The payout happens on a periodical basis in form of survival benefit. After the term ends, the balance is paid out as a maturity benefit. But, in these plans, life risk is covered for the entire amount of assured sum, regardless of the fact that parts of benefit have already been paid out to the insured.

5. Whole Life Insurance
Whole Life Plans are designed to offer lifelong protection, unlike a term insurance policy. This lifelong cover comes with death benefits which ensure your family’s stability even after your death. It also carries maturity benefits, which come into play after the expiry of the term. This type of insurance is mostly used as a means to create an inheritance or estate for loved ones, thereby securing their future.

6. Child Plans
Child Plans can be bought either in the child’s name of parent’s name. It doesn’t matter, because all the benefits of such policies are paid out to children after maturity. The parents can only act as guardians of the finances, until the child reaches a predetermined age or stage of life.

7. Retirement Plans
Retirement Plans are designed to cover loss of income, just like Term Plans. An individual loses their regular source of income after retirement. Any benefits like gratuity or provident funds are always at risk of running out rather quickly. Annuity plans can safeguard your post-retirement life by providing returns like regular income. These plans ensure your financial independence after your retirement.

Make An Informed Decision
Now that you are aware of different types of insurance policies, it will go a long way in helping you to make the right investment decision. After all, an informed decision is the only way you can ensure that your loved ones are financially secure in their future, when you are not around to look after them.

You should also make it a point to decide on the right type of insurance policy after due consultation with experts or any of the insurance providers. It is also wise to compare offerings from different insurance providers to choose one that offers maximum returns on your investment or the best maturity benefits.

It Is More Than An Investment, It Is A Responsibility
A Life Insurance policy is a potent tool which is easily accessible to us, to carve out a secure future for our loved ones.

A good Life Insurance policy not only ensures our peace of mind, but it literally assures us of a better future for our loved ones and the next generation.

So, make this Diwali count! Choose the right gift for your family. Think ahead! Let the light of Diwali guide you to make the right decisions and destroy the darkness of doubts.

So, now you know what gift to choose this Diwali. Make the right choice!

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