Cities Where Life Insurance Plan Is a Must
Cities Where Life Insurance Plan Is a Must

Life in cities moves at a faster pace than life in towns and villages. All the major companies and firms have their offices and headquarters in cities. This is the reason many people from small towns and villages move to the city for better income and lifestyle. Today the scenarios of the cities have changed and all the major cities in India like Mumbai, Delhi Chennai, Bangalore, and Kolkata have become very crowded. Living in these cities is not easy and there is constant pressure and stress of work in day to day life. In such scenarios, the unpredictability of life and risks also increase. This is where having life insurance become all the more important.

Let’s explore the covers offered by life insurance policies that will give comprehensive coverage to a policyholder living in metro cities.

1. Death Benefit

Death benefit is the most basic and important coverage of a life insurance policy. It is the sum assured paid to the beneficiaries in the event of the death of the policyholder during the policy term. The lump sum amount so paid is released only if the policyholder passes away naturally or due to health-related reasons specified in the policy. For example, in case a person dies peacefully in his or her sleep, it would be termed as natural death and the sum assured would be released to the beneficiaries, as per the terms of the life insurance plan.

2. Accidental Death Benefit

Cities like Mumbai have a high number of motor and other accidents due to busy traffic conditions and crowded public transport. Average road deaths in a year over a decade are 1,36,118 (source-ministry of road transport and highways). To safeguard the beneficiaries from liabilities arising from the death of the insured due to causes that are not natural or health-related, life insurance policies offer the accidental death benefit rider. By paying an additional premium for this rider, the beneficiaries become eligible to receive the sum assured even if the insured passes away due to accidents or mishaps. This amount is over and above the sum assured which the beneficiaries are applicable to receive in case of accidental death. However, there are exclusions to this rider, like acts of war, unnecessary risks like intoxicated driving, etc.

3. Additional Rider Benefits

Due to a stressful life, a person can become a victim to a critical illness which might result in disability or death. Cases of critical illness like cancer have become alarmingly high in the last few years.  Life Insurance plans come with additional riders which cover critical illness, total and permanent disability, covers for hospital care, surgical care, and sometimes even covers for funeral expenses in case of the insured's demise. The riders can be availed by paying an additional amount to the base premium of the policy.

i. Critical Illness Coverage

Generally, illnesses which are heavily debilitating or even life-threatening, and may render you incapable to work for a considerably long time, resulting in a loss of regular income are considered as critical illnesses. The diseases usually covered by an insurance company in such cases are:

a)    Heart attack

b)    Cancer

c)    Organ transplant

d)    Paralysis

e)    Disability

f)    Stroke

g)    Blindness

ii. Total and Permanent Disability

Accidents or mishappenings that leave you with a permanent disability such as loss of limb, hearing, sight, speech impairment, etc. are covered under TPD insurance. Such disabilities strip you of your ability to work in your own occupation again. Thus, a lump sum cover is provided for you to take care of the big worries off your shoulder, which you would have had to clear in instalments otherwise. These include paying off the mortgage or other debts, making home modifications suitable for your altered condition or paying for rehabilitation costs, nursing and medical expenses, on-going household expenses, etc.

iii. Waiver of Premium

This is a clause in a life insurance policy, present only if specifically issued to the policyholder, which waives the premium amount during the policy term in the event that the insured becomes critically ill or permanently disabled, as mentioned above. 

How to pick life insurance coverage if you are living in a city to ensure comprehensive financial coverage?

It is absolutely necessary for you to compare life insurance policies. There are many advantages to doing this. You will not only find the best rates, but more importantly, you can also find the cover with the best features and benefits. When comparing the life insurance plans, keep the following points in mind:

Type of coverage available

This is the single most important factor to consider when comparing life insurance. The life plans are available in different kinds such as term life insurance, endowment life insurance, money back life insurance, etc. You, therefore, have to understand what type of cover and benefits each plan offers. You need to select the cover that will best suit your requirements.

Premium payable for the plan

Last, but not the least, you have to take the cost of the plan into account as well. This will help you in maintaining the perfect balance and keeping your life covered in a reasonable manner.

Period of life cover on offer

Next you need to check the required policy period. You have to calculate all the financial milestones lying ahead in your life. Make an approximate estimate of how long it would take to reach the milestones. Your ideal life insurance plan should be taken for a similar duration.

Conclusion

Keeping the above-mentioned points in mind, one can safely choose a comprehensive life insurance cover that will help secure the lives of your loved ones in cities. So, whether you are looking for a pure life cover or are seeking to combine insurance with investment, find an ideal policy for yourself online. The fact of the matter is that whether you are living in a city like Mumbai or in any small part of India, life insurance coverage is a must.

We have seen from the points above how life insurance comprehensively covers various risks that exist in the city life. These risks also exist in small towns and villages. Life Insurance is a must no matter where you live in India or for that matter in the world. It gives peace of mind and financial security to your loved ones at a very affordable cost.

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