If you are considering getting life insurance to protect your family, there are many features that you might not be aware of. Before purchasing any product, you need to know all the terms and conditions that apply to it. So, let’s look at six things that you don’t know about life insurance before you go ahead and get a plan.

1.  Fulfils Retirement Goals

If you opt for a life insurance plan with a savings component, you will probably get the maturity benefit close to retirement. For this, you can choose a longer tenure, giving you a lump sum payout on your retirement. This maturity sum can be your savings, securing you post-retirement and making you independent. You can also go for a regular payout if you would like it as a monthly salary.

2.  Invisible Wealth

Though the lump sum amount shall be accessible after the policy expires, it acts as invisible wealth. You have to pay regular premiums which are set aside by insurer, leaving you worry-free about saving money. In this way, you are creating a corpus for future purpose with fixed returns.

3.  Rider Benefits

Riders are add-ons that can be combined with your insurance plan to increase your coverage. For unfortunate conditions like getting diagnosed with a critical illness, losing your job, accidental death, etc. you are able to safeguard a certain amount of finances for yourself. You can buy riders like critical illness rider, waiver of premium rider, and accidental death rider amongst others with your insurance plan. Benefits like lump sum amount and regular payouts can be availed.

4.  Certain Deaths Are Not Covered

Your life insurance policy does not cover several deaths. If this type of death were to occur, it could lead to claim rejection where no money is given to the beneficiary. Some of these deaths are when the insured passes away under the influence of alcohol, death due to murder, demise during childbirth, death while participating in dangerous activities, passing away due to pre-existing conditions, and many such. Thus, you need to read your policy papers carefully and go through the exclusions before signing any document.

5.  Loan against Insurance

Insurance plans also allow you to take a loan against the policy. This kind of credit is a much lucrative option when compared to a personal loan. The money is processed quickly, and there is not much documentation required as the insurer already has all the details. With no CIBIL score, loan against insurance policy protects you during emergencies.

6.  Tax Benefits

You can avail tax benefit on your life insurance plan under certain tax provisions. The premium paid towards the plan can be claimed under Section 80C of the Income Tax Act, 1961. Also, the maturity and death benefit can be claimed as tax-free under Section 10(10D).