Life Insurance Planning: Protect Your Family's Future

Life insurance is the foundation of financial security. It ensures your family can maintain their lifestyle and achieve their goals even in your absence. Here's how to plan effectively:

1. Calculate Your Insurance Needs

Human Life Value (HLV) Method

Calculate based on:

• Current annual income
• Years until retirement
• Expected inflation
• Existing liabilities
• Future expenses (education, marriage)

Formula:

HLV = (Annual Income × Years to Retirement) + Liabilities + Future Expenses

2. Types of Life Insurance

Term Insurance

• Pure Protection: High coverage, low premium
• Affordable: Best for young families
• Flexible: Choose coverage amount
• Tax Benefits: Premiums deductible

Whole Life Insurance

• Lifetime Coverage: Protection for entire life
• Cash Value: Build savings component
• Loan Facility: Borrow against policy
• Maturity Benefits: Returns at maturity

Endowment Plans

• Savings + Protection: Dual benefits
• Guaranteed Returns: Assured maturity value
• Bonuses: Regular bonus payments
• Tax Benefits: Section 80C benefits

ULIP (Unit Linked Insurance Plans)

• Investment + Insurance: Combined benefits
• Market-Linked Returns: Higher growth potential
• Flexibility: Switch between funds
• Transparency: Clear fund performance

3. Benefits of Life Insurance

Life insurance provides:

• Income Replacement: Family maintains lifestyle
• Debt Repayment: Clear outstanding loans
• Education Funding: Children's education secured
• Retirement Planning: Build retirement corpus
• Tax Benefits: Save on taxes
• Loan Facility: Borrow when needed

4. When to Buy Life Insurance

Best time to buy:

• Early Age: Lower premiums
• Before Marriage: Protect future family
• After Children: Ensure their security
• Before Major Loans: Cover liabilities
• Career Growth: Match increasing income

5. Tax Benefits

Life insurance offers:

• Section 80C: Deduction up to ₹1.5 lakh on premiums
• Section 10(10D): Tax-free maturity benefits
• Section 80CCC: Additional pension plan benefits
• Section 80CCD: NPS contributions

6. Regular Review

Review your coverage:

• Annual Review: Update coverage needs
• Life Changes: Marriage, children, job change
• Income Increase: Increase coverage
• Policy Comparison: Ensure best rates

Conclusion

Life insurance is not about you—it's about protecting those you love. Don't wait for the right time; the right time is now. At Yogkshema Corporate, we help you determine the right coverage and choose the best life insurance plan for your family's needs.