The moment we start earning, all we can think of is accumulating materialistic things. Buying a house, a new car, gadgets and the list goes on. However, what we conveniently forget is that the most important investment has to be made in life itself and covering it from any unforeseen risks. Buying life insurance is one of the smartest moves you’ll make that can go a long way in helping you live a relaxed and stress-free life.
Allow us to present to you the benefits of buying life insurance that is extremely vital for your family’s financial independence:
1) Life Cover
Life is unpredictable and if something unfortunate happens to you, your family and dependents might have to face unprecedented financial stress. With life insurance in place, they can be assured of financial stability as the insurer will pay the sum assured as well as any bonuses to the nominee of the insured. A substantial amount at the time of death can help your family to continue with the same lifestyle while they try to find means to replace your income.
2) Plan Various Milestones
Not only after death, but life insurance policies also offer financial support at different stages of your life. Depending on the type of policy you have purchased, you can plan pay outs at important stages of life like marriage, children’s education, their marriage and the likes. You can also plan for your own retirement or purchasing an asset like home.
3) Investment Tool
Most life insurance policies offer massive and guaranteed returns on investment that include bonuses as well. Hence, if you buy the policy when you’re young and stay invested throughout the course of the term, you can expect returns on investment that’ll help you during your old age. Another plus point is that the insurance sector is tightly regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and it makes sure that your investments are absolutely safe with insurers. Whatever is committed to you in the policy document will be delivered and there is an efficient channel of communication to register any genuine complaints or grievances.
4) Health Benefits
Life insurance plans allow you to buy add-ons including health cover so that you get a security cover in times of medical emergencies. Hospitalisation expenses are going through the roof these days and with a life insurance policy with health cover as an add-on or a stand-alone health policy can help you get the best medical care without hitting your budget! You can also buy additional riders including accident cover, critical illness cover and more as per individual insurance plan.
5) Plan for Loans
Various financial institutions consider your life insurance policy as an asset and agree to lend you money against it. As per the insurance clause, if something happens to you, the loan amount will be paid back to the lender without putting any financial stress on your family members. Hence, you can take a personal loan or house loan against your insurance plan at attractive rate of interest.
6) Retirement Planning
Various insurance policies involve a component of paying out regular income after a particular period of time. You can invest in such policies to ensure regular income post-retirement when the need for monetary support is the maximum. Your intelligent decision during youth will yield impressive results for you later in life. Even if unfortunately you pass away, your family members can gain from such benefits.
7) Tax Benefits
This is the most common benefit based on which insurance policies are being sold over the years. The government allows you to claim tax benefits on the premiums you pay towards insurance plan. Section 80C of the Income Tax Act offers you tax exemption for investing in insurance.
Life insurance is important not because you want to earn money out of it, but to make sure that your family lives comfortably even in your absence. The urgency increases if you’re the bread winner of the family and are short of other financial assets under your name. Insurance will provide you adequate cover while you’re alive and help your near and dear ones to cope with your death in financial terms. The best part is that you don’t have to run from pillar to post to get policy. With advancement in technology, you can find out about the best policy online after comparing several plans and select the one that meets your requirements.
Just spend a few minutes out of your busy schedule to plan for an insurance cover that can make your life so easy and comfortable. You need do it for you and your family’s peace and well-being!