Insurance, though often viewed as an expense, is one of the most critical components of a sound financial plan. It provides a financial safety net during unexpected events such as illness, accidents, safeguarding individuals and families from potentially devastating financial losses. This article explores why term insurance is important and integrates how tools like the HLV Chatbot from RichVik Wealth can help you as an individual to calculate the right amount of life insurance.
– Importance of Term Insurance
1. Financial Protection for Dependents
The primary purpose of term insurance is to provide financial protection to your family or dependents in case of your untimely death.
2. Affordability
Term insurance is generally more affordable compared to other types of life insurance, like whole life or universal life insurance. This makes it accessible to many people, especially young families.
3. Accident insurance benefit
Another advantage among the term insurance benefits is accident insurance rider. You can upgrade your term insurance policy to include the Accidental Death Benefit Rider.
4. Coverage for Critical Illnesses
Several term insurance plans allow customers to opt for add-ons or riders for additional financial protection to cover various critical illnesses.
5. Income Tax Benefits
In respect of premium paid, you can avail a deduction of up to Rs 150,000 per annum under Section 80C of the Income Tax Act 1961. Also, the death benefit paid to your nominee (in case of unfortunate death) is tax free under Section 10 (10D) of the income Tax Act.
– Using the Human Life Value (HLV) Chatbot by RichVik Wealth Pvt Ltd
We have developed a unique tool the HLV Chatbot to help individuals calculate their Human Life Value (HLV). This calculation helps determine how much life insurance one should ideally have based on their lifestyle expenses and income. The HLV is the monetary value of the economic contribution a person makes to their family, considering both present and future earnings.
The HLV Chatbot works as follows:
1. User Input Data: The chatbot collects specific details from users, which includes:
Income details: Current monthly income.
Retirement Age: Considering at what age you are retiring.
Expenses: Recurring expenses like household costs, education fees, loans, etc.
These inputs are used to evaluate the user’s earning potential over their lifetime, considering factors such as their age, expected retirement age, and other obligations.
2. HLV Calculation: Based on your responses, the chatbot calculates the amount of life insurance coverage you would need to fully protect your family.
This tool simplifies the process of determining life insurance needs, making it accessible to individuals without in-depth financial knowledge. By taking the time to calculate your HLV, you ensure that your family is not left vulnerable in case of an unexpected event.
Link for HLV Chatbot: https://richvikwealth.in/hlv-chatbot/
Conclusion:
Insurance is a crucial aspect of financial planning that should not be overlooked. It ensures financial security in uncertain times, providing peace of mind and protecting loved ones from potential financial strain. By taking proactive steps today to secure the right amount of coverage, you can protect your family’s financial well-being and build a stronger financial foundation for the future.
To understand more on the topic as well as to start investments please feel free to contact us:
Phone: +91-9324609115
E-mail: team@richvikwealth.in