Life Insurance: Is JennyLife the best Insurance provider for you?
- 3 August 2020 | 1720 Views | By Mint2Save
Just like you insure your prized possessions against damage, there is a way to ensure your life as well. A Life Insurance policy is a contract with an insurance provider – in exchange for a premium amount, the insurer provides a lump-sum payment (a.k.a. death benefit) to beneficiaries in the event of the insured’s death. Typically, a life insurance policy is chosen based on the financial goals and needs of the owner. Based on the tenure of protection required, an individual can choose from term life insurance or permanent life insurance policies. While “Term” life insurance provides protection for only a specified period of time, a permanent insurance policy offers lifetime coverage.
What is Life Insurance?
Term life insurance policies are designed to provide financial protection to the owner’s beneficiaries for a pre-defined time duration, such as 10 or 20 years. A term life insurance policy is generally less expensive than permanent life insurance plans and the proceeds from term insurance are usually used to replace lost potential income during employment years. Customers often invest in a term life insurance policy to create a safety net for their family keeping in mind their financial goals such as paying off a mortgage, keeping a business running, paying for college tuition fees, etc.
What Is Universal Life Insurance?
Permanent universal life insurance is designed to provide a lifetime coverage against the risk of death. Owing to its lifetime coverage, a permanent life insurance policy has higher premium rates than term life insurance. Such policies may allow owners to raise or lower premium payment or coverage amounts throughout their lifetime. Typically, universal life insurance is used for flexible estate planning to help preserve and transfer wealth to the insured’s beneficiaries. Another common use is long term income replacement, where the need for funds may extend beyond the insured’s employment years. Some universal life insurance products focus on providing both death benefit coverage and building cash value while others focus only on guaranteed death benefit coverage.
Another common variant of permanent life insurance policy is a whole life insurance. The whole life insurance is similar to the universal life insurance policy in the sense that it provides lifetime coverage. However, whole life insurance has fixed premium payments and has a cash value, which acts as a savings component and may accumulate tax that has been deferred over time.
Do I need Life Insurance?
All of us face the risk of dying too soon or living too long. In either case, a life insurance policy comes handy. If you are still wondering whether you need life insurance or not, there are a few compelling reasons to opt for one:
- A life insurance policy ensures your family and loved ones have sufficient financial support in the event of your demise.
- In case of an untimely demise, the insurance funds may help in paying for your children’s education and other needs.
- A life insurance policy is a good tax-exemption tool.
- Apart from its other benefits, it creates a savings plan for your future so that you have ample funds for your retirement.
- It provides additional income when your earnings are hurt due to a serious illness/accident.
- A life insurance policy can be the savior during other unforeseen financial contingencies and/or abrupt lifestyle requirements.
In a post-COVID-19 world, having the right amount of life insurance has become inevitable. Although many employers offer no-cost term life insurance to their employees, the coverage may not be sufficient, especially if the employee has a large family or higher financial liabilities. In such situations, supplemental life insurance can bridge the shortfall in coverage and provide added protection. Some employers often provide employees with the option to purchase supplemental life insurance for increasing coverage without stipulations.
What if I already have life insurance with my employer?
But, given the fact that the average employee remains with an employer for less than five years, purchasing supplemental insurance through a private carrier may be a better option. Individuals can, thus, determine how much coverage they require above the employer-provided amount and accordingly purchase the right product. If the employee leaves the company, they would keep the supplemental coverage. Moreover, if the employee’s life situations change, then the individual can simply adjust the amount of coverage without any limitations from the employer. While, whole life insurance may be cost-prohibitive, purchasing private supplemental term life insurance could be a better option.
Can my Spouse also be Covered?
Traditionally speaking, life insurance has been designed to cover the life of the primary breadwinner of a family. However, with the rise in the number of working couples, an increasing need is felt for life insurance cover for the spouse as well. The need for such plans has emerged with the emergence of double-income nuclear families, where both earning members contribute towards household expenses, and all other aspects, such as lifestyle, loans etc, are planned based on the combined income. One way to effectively include your spouse in a life insurance cover is by opting for a joint life cover.
Giving due recognition to the fact that the life of your spouse is equally important, joint life insurance offers pay-outs in the event of death of either one of the two insured and, in some cases, regular income to surviving family members as well. There are multiple varieties of joint life insurance policies. Some joint life term policies payout on first claim basis – i.e. the sum assured is paid on the death of whichever policyholders die first and the policy ends thereafter.
In the case of certain other joint life policies, there are pay-outs on the death of each of the two insured respectively. Some policies also offer regular income benefit, in-built accidental death benefit, and in-built terminal illness benefit. Joint life insurance is extremely beneficial for young couples who are starting their family life, especially with small kids and/or outstanding loans.
Can you buy Life Insurance if you have Cancer?
Another thing to consider for any life insurance policy is your medical history. While buying life insurance, the insurance company requests for various medical check-ups and reports. Buying life insurance after a cancer diagnosis becomes more difficult and expensive. In most cases, cancer patients typically qualify for guaranteed issue policies that offer limited coverage and have restricted pay-outs for the first few years. Survivors that have been in remission and out of treatment for two or more years are much more likely to qualify for a traditional term or permanent life insurance policy but at higher premium rates.
Which are the best life Insurance Companies?
Like any other investment, before you decide to buy a life insurance policy, think about the various considerations such as – the type of protection that might serve you best, the amount of life insurance coverage you need, and which company you want to place your faith in. The most trusted life insurance companies in India are LIC of India, ICICI Prudential, SBI Life, HDFC Standard Life insurance, Max life insurance, Reliance Nippon, Tata AIA life insurance, PNB Metlife.
In what areas does JennyLife provide coverage?
With the Fintech trend picking up, JennyLife is worth a mention here. It is a contemporary life insurance app that has come up in many countries including the US. It provides the same quality life insurance from your smartphone and web within minutes. JennyLife offers one of the fastest and the most convenient life insurance application processes along with the latest in encryption technology available in the market. Although, Jenny Life was built with the mom in mind (i.e. it is focused to protect women/ mothers by educating them about the importance of life insurance) both women and men can get quality life insurance from Jenny Life.