7 different ways you can use your Life Insurance policy

Life Insurance is an investment for you and your family’s future; but it also comes with a load of added benefits. Want to know what they are? Read on to see how you can get more out of your Life Insurance policy.

For loans and cash withdrawals

There are many Life Insurance policies you can choose from which will allow you to withdraw or borrow money. Interest rates for loans borrowed from your policy tend to be relatively low. You can use the cash value of your Life Insurance policy as the loan collateral. Another advantage is that you can pay for your premiums from the cash value of your policy if you want to stop paying premiums for a while.

To waive off premiums

This comes as a surprise, doesn't it? When do you think you might need this? Well, the premiums of your policy as well as the cover can be suspended in times of unemployment, financial misfortune, maternity/paternity leave, a sabbatical from work, or a long term leave. The premiums are usually waived off for a fixed duration during the policy term. However, you would need to check with your specific policy for this feature.

Getting a Joint Policy

Were you aware that you are allowed to take Life Insurance for your spouse or your child with the same policy? In the occurrence of an unfortunate event of you passing away and thereafter your spouse, the policy continues to protect the surviving life for any further uncertainties.

Increase in Life Cover

It is advisable to re-examine your Life Insurance needs every few years. As you progress in your career, your income increases resulting in changes to lifestyle. Then there are big life events such as getting married, purchase of a house, birth of children, etc. These milestones of life enhance your need for more life cover. There are Life Insurance plans available that allow you to increase life cover without having to go through medical tests.

MWP Act

Are you aware that Section 6 under the Married Women’s Property Act was created to safeguard the assets owned by women from creditors, relatives, and even from their husbands? If you take your insurance plan under the MWP Act of 1874, you can guarantee that the amount assured in your policy is passed on to your wife and children after you are gone.

Repaying debts

In times of crisis, the last thing you would want is for your family to deal with financial liability and debt collectors. These liabilities could be in any form - an outstanding home loan, personal loan, vehicle loan, or an overdraw on your credit card. All these could be taken care of if you invest in the right Life Insurance policy. These policies pay off a borrower’s outstanding debt in the event of the borrower passing away.

Using Riders

Riders are additional benefits that can be added to your basic Life Insurance policy. Riders are beneficial as they allow you to increase your life cover and exceed the scope of the main Life Insurance policy. What this means for you is that you will have more comprehensive protection from your policy. Some of the available rider options available are for critical illnesses, permanent disabilities, for accidental death, etc.

Speak to your insurance advisor today and see which option suits your requirement the most. Karo sabse pehle Life Insurance.