6 Things You Didn’t Know Life Insurance Could Do

We're sure you already know about the monetary benefit that life insurance offers to nominees when something happens to the insured party. But, did you also know that your insurance policies can also be used as an instrument for financial planning? Wait, there's more! There are some other benefits that you could be eligible for when you purchase a life insurance policy—if you opt for the right one that is. Here are 6 things you may not have known a life insurance policy could do for you:

1. It Can Be a Tax-favoured Source of Money

   A whole life insurance plan that builds cash value over a period of time may serve as a tax-favoured repository of funds in times of need. You can use the cash value to satisfy almost any requirement, whether it is funding your children’s education or paying for a vacation. Such cash value is tax-free since it is not considered a gain.

2. It Can Serve as Invisible Money That Will Help Your Family

   Having life insurance is like having an invisible shield around your loved ones. Every time you pay insurance premiums, you are actually working towards providing your family with an invisible financial backup in times of need. And even though you don't have any cash-in-hand to show for it, you will have peace of mind knowing you are financially protecting all those who matter to you.

3. It Can Waive off Future Premiums

   Many life insurance policies come with premium waiver riders, and this benefit can help policyholders who become disabled to keep their coverage. For example, plans such as HDFC Life Click 2 Protect 3D Plus  waives off future premiums in case of accidental total permanent disability.

4. It Can Make Your Retirement Goals Come True

   Want your savings to support you once you retire? Unfortunately, many uncertainties can come into play if you are trying to predict how long your retirement nest egg will last. Thankfully, whole life insurance can help you when it comes to retirement planning. You can use the proceeds to ensure that there is enough money to replace any lost income during your golden years.

5. It Can Offer Financial Support in Case of Disability or Illness

   If you're under the impression that life insurance policies only offer financial support in cases where the policyholder is no more, we’re here to tell you that isn’t always the case. Plans such as HDFC Life Click 2 Protect 3D Plus offer accidental disability or critical illness riders. These riders pay the specified sum insured if the policyholder becomes accidently disabled or experiences a stroke, heart attack or cancer, among other critical ailments. This can provide a vital safety net if you are no longer able to work and have mounting medical and living expenses.

6. It Can Be Used as Collateral

   A valuable feature of a life insuranceplan—except for term insurance  policies—is that in addition to providing financial protection, it can be used to secure a loan. In other words, a plan that comes with a maturity benefit can also be used as collateral while borrowing funds, providing you with financial flexibility when you need it the most.

HDFC Life offers a wide range of policies for you to choose from based on your specific needs and requirements. There’s something for everybody, so join hands with us and enjoy all the benefits of life insurance today

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ARN: ED/12/19/17049