RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

How Life Insurance forms an important element of your Financial Planning

down-arrow
How Life Insurance forms an important element of your Financial Planning
March 07, 2023
Financial planning is a strategic way to ascertain the availability of adequate funds or reserves for the accomplishment of financial objectives or to meet unplanned contingencies. We all work hard to secure a better tomorrow for our loved ones. Life is a long journey which comprises of various financial objectives and uncertain exigencies.

To offer you a financial cover against unpredictable events and to accomplish the financial goals of life, a life insurance policy is an appropriate proposition to invest into as a part of your audacious financial planning.

A life insurance plan forms a vital constitution of one’s financial planning in the following ways:

  • Protection for your loved ones

    A life insurance policy acts as a financial backup plan for your loved ones. You pay a fixed amount of premium to the insurer, and in return,you get a life cover against your life in the form of a death benefit.So, in the event of your unfortunate demise, your family will be financially compensated with the sum assured plus additional benefits(if any) as per your life insurance policy.

  • Saving and Investment

    Life insurance policy acts as an appropriate saving and investment tool.With the periodic, regular and systematic payment of premium, the sum assured increases with various cumulative benefits like simple/compounded bonuses, guaranteed additions, loyalty benefits, etc. during the term of your life insurance policy. Additionally, it brings discipline in your investment approach.You may either invest in market linked or traditional life insurance plans as per your risk appetite and capacity to pay.The life insurance policy acts as a saving tool as it offers a guaranteed maturity benefit to attain various financial goals set in your life.

  • Manage risk against debts

    By investing in a life insurance plan, the benefit of managing risk against debts and loans is covered. A term insurance policy with a similar policy term as of your outstanding loan will reduce the risk of inability of repayment of loans in the event of your untimely demise. So, after your death, the burden of outstanding loans and debts will not be passed to your loved ones.

  • Achieve long term goals

    Long term goals like buying a car, home, education of your kids, marriage of your children and planning for your retirement, need a well analyzed and early start of financial planning. A life insurance policy with an adequate life insurance cover will help you attain different long term financial goals. Life insurance policies are a long term contract which offers a variety of insurance plans to achieve your specific or multiple financial goals by opting the right mix of insurance plans. It keeps your investment intact for a long and continuous period of time towards a planned and secure financial future.

  • Tax saving

    A life insurance policy also acts as a tax saving tool as the premium which you pay towards your policyis available for tax benefit under section 80C of Income Tax Act, 1961. The insurance policy proceeds which you receive from your life insurance policy are also tax deductible under section 10 (10)D of the Income Tax Act,1961.

    Financial planning is a major step towards a better and prosperous tomorrow. Making life insurance policy as a part of your financial plan is a stepping stone to safeguard the future of your loved ones. A life insurance policy offers a bundle of benefits to accomplish your set financial goals with a disciplined outflow of money in the form of a premium. A life insurance policy will prove to be more fruitful if taken at an early stage as the premiums are directly proportional to the age at which the policy is bought. It is a safe and secure form of saving which needs to be reviewed periodically to accomplish the changing objectives of life as per the evolution of scenarios of life.

Author’s Bio

Harjot Singh Narula, Founder & CEO, www.comparepolicy.com

Similar Articles

ARN: ED/12/19/17049

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Blue Chip Fund

Blue Chip Fund

"Blue chip fund invests in stocks / shares of well-established companies with credible financial performance, market capitalization & steady payout of dividends."

Diversified Equity Mutual Funds

Insurance Overload: Are You Hoarding Policies Instead of Securing Your Future?

Single Premium Term Insurance: Meaning, Benefits & Types

Explore the details of a Single Premium Policy in term life insurance. This guide provides insights into its meaning, benefits, and types, offering a comprehensive overview.

Single Premium Term Insurance: Meaning, Benefits & Types
Marital Financial Inclusion - How to Plan Jointly Previous
Marital Financial Inclusion - How to Plan Jointly Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches