A life insurance policy acts as financial protection for your family in case of an unfortunate event. It can also offer maturity benefits on surviving the term and be used to save for your future needs. In return for this payout
Life Insurance acts as financial protection for your family in case of your death or a payment made to you on surviving the policy term.
In return for this payment, you make periodic fixed payments to the life insurance company.
In certain types of policies, there is an option to get critical illness benefits or create additional protection for your family if you pass away from an accident.
You can read about these features and types of life insurance policies below.
Life Insurance and Income Protection cover pays out if you are unable to work due to illness or injury, however it will not pay out in the case of redundancy.
The primary difference between an Income protection insurance policy and Critical Illness Insurance policy is the amount and frequency of pay out.In an Income protection claim the pay out is periodic and generally a percentage of earnings usually 60% to 70% paid out on monthly basis and the said payment are exempt from tax, as compared to Critical Illness claim which makes a one-time lump sum pay out.The pay out under Income Protection policy begins after the end of a pre agreed period know as a deferral period, the shorter the deferral period the higher the premiums, the usual deferral period is between 13 to 26 weeks.
While seeking Income protection cover, it is essential to check with your employer the cover they have in place to support you as an employee for the time off work.Life Insurance is a protection product which helps to provide financial security and cover to your dependents, family and loved one’s in the unfortunate event of death.
The said money that is paid out as a claim from the policy, can be very useful to the dependents to continue the lifestyle they are used to.
The funds received can replace a loss of income and could be used to pay off debts like Mortgages, which can reduce a huge financial burden.
Financial planning is the process of understanding your current financial situation as well as helping to plan for future spending.
It’s an important part of starting and maintaining a successful business – it helps to predict earnings, plan budgets for marketing, payroll, and other business expenses, and also helps a business understand what investments, internal or external, are smart, worthwhile decisions.Ultimately, financial planning helps you ensure that you’re tracking every dollar and making the most of each one along the way.The steps to a successful financial planning process.Here are some of the steps to a smart, thoughtful financial planning process that will help you build long-term success.1.
Having this information gives your financial advisors and business leaders a solid starting point towards what process needs to be made and what guidelines need to be in place.3.
You’ll only know who needs to be involved in the plan creation based on your business and your goals.5.
Assess the planSetting things in motion is important, but it’s important to have regular check-ins to see if you will need to adjust any part of the plan to meet your goals on time.
You may need to adjust your timeline or make tweaks to your process to aggressively ramp up efforts in one area or pull back in others.