Life Insurance for Military Personnel

2024-08-02

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Life insurance is a basic requirement that you must have. Life insurance plays a huge role in ensuring your family’s financial safety if you lose your life unexpectedly. A life insurance policy becomes even more important if you are the only earner or have a job that involves risks.

If you are military personnel by profession, then your job is most likely to involve huge risks. People involved in the defence sector are the pride of our country. You work day and night and wear your heart on your sleeves to protect our country.

As defence personnel, you not only think about your life but also about the safety of those back home. Now that you are doing such a crucial job for the country, it becomes important to ensure that both you and your family are financially protected.

To take care of this part for you, life insurance comes to the rescue. It can take care of your family members in unexpected and unforeseen circumstances.

Life Insurance Plans for Defence Personnel

Life insurance includes many variants within itself. Different plans offer different services to you. These are as follows:

1. Term Insurance Plan

It is a type of life insurance plan which provides life coverage to you for a specific period/term against the payment of a regular premium. This is the most affordable form of life insurance.

A term plan will pay your family death benefit if you die within the term of the policy. It also offers you the option to add riders and other benefits. Certain insurance providers also have term plans which will return your premium paid if you survive till the maturity of the term. Buying a term insurance plan with return of premium is completely a win-win situation for you.

As defence personnel, you are not sure of your life any day. Term plans will ensure your family receives financial coverage at affordable premiums.

2. Unit Linked Insurance Plans (ULIPs)

A unit linked-investment plan or ULIP is a financial product that offers you live coverage as well as an opportunity to invest. Thus, it offers dual benefits of investment and insurance in a single premium.

As defence personnel, you surely would be tempted to invest in a ulip for the following reasons:

a. It involves both death benefit as well as maturity benefit
b. It also has options where you only have to pay premiums for a limited period
c. Provides a safety switch where you don’t have to worry about losing your gains as once gains are made it automatically transfers the gains to a safer fund
d. Premium funding benefits make sure that premiums are paid and your goals are achieved even in your absence

3. Endowment Plans

The safety of your investment is a key consideration for army personnel. You wouldn’t want your investment value to go down. This is where an endowment policy helps. Safety of returns is the prime focus of endowment plans.

An endowment policy can provide you with life cover as well as safe returns. Thus, it has dual benefits of safety and insurance in a single plan.

An endowment plan has:

a. Life coverage

A fixed amount known as the Sum Assured is provided to the nominees in case you die during the term of the policy. Thus, your family is taken care of.

b. Risk-free returns

An endowment policy ensures the safety of your returns. The funds in which the amount is invested are not linked to the market. This keeps your investments safe from market volatility. Thus, you receive guaranteed returns as a maturity benefit.

4. Pension Plans

Pension plans are an instrument under which your lump sum money is used to create a steady income stream. Under this plan, you are required to invest specific amounts to a fund over a period of time either in a lump sum or as a recurring deposit.

After maturity, regular income will be paid to you from the amount you have saved. As military personnel, you receive a guaranteed pension from the government, but having a cushion of extra retirement income is always preferable.

What to Look for in the Life Insurance Plan?

The work you do as military personnel does involves huge risks, naturally, you will want various things in your life insurance plan. Here are the things you should look for to get the best life insurance plan.

1. Ease of Claim Settlement

Defence work is of very high risk and the chances of untimely death are thus very high. Thus, you should look for a policy that involves faster settlement of claims. You should ensure that there are fewer hassles involved. A policy with timely distribution of the maturity proceeds should be looked for.

2. Individualized Service

Army and defence personnel’s needs are a bit different than other people's due to the nature of their job. A proper team that is devoted to understanding the needs of you as well as your family.

3. Good Service

In a defence job, you might be constantly on the road. There is no specific long-term posting as you may be needed anywhere, even in the very remote parts of the country. So, the insurance must be accessible to you so that you can purchase the policy and reach the provider from anywhere.

4. Renewal Services

You should look to buy the policy which provides you easy renewals. An ideal policy gives you chance to renew without any hassle. Also, policy should provide you with flexibility in choosing your policy term, premium payment mode, etc.

How is Life Insurance for Defence Personnel Different?

Since the military personnel profession has high risk involved, they generally face many difficulties in getting insurance. But many insurance providers will provide insurance to you despite being in the defence sector.

In ULIPs there is a condition in which the whole investment fund is transferred to the money market (100%) in case of war, war-like situations.

The Accidental death benefit is not provided to you if you die in a war, whether the war is declared or not.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.

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