Why Should You Buy a Life Insurance Policy?
Besides offering financial protection to your family, life insurance policies offer the following benefits:-
Certainty: Once a goal has been set, life insurance policy is the best means to fund that goal. This is because it gives a peace of mind that in case of any unfortunate event such as death and critical illness; the sum assured paid by the life insurer will be sufficient to meet future goals of the policyholder or family. People can worry less about what will happen to their families and loved ones in case something unfortunate or unexpected happens to them with an adequate life insurance cover.
Tax benefits: The maturity benefits offered by life insurance policies are eligible for tax benefits under Section 10(10D) of the Income Tax Act in India. Also, premiums paid on life insurance policy get tax deductions under Section 80C of the Act. Planning your life insurance cover the best way possible may even mean that that your tax slabs will be different and you may be able to plan your income to fall under a lower slab than a higher one.
Encourages contribution: Most often, life insurance policy is taken for a specified goal, such as child’s education and marriage. In this way, it discourages the person from utilizing those funds for any other motive. Slowly and steadily, your life insurance policy helps you to increase your corpus and allows you to realize your best dreams without too much effort. The only effort required from you is to pay the life insurance premium on time.
Plan for retirement: Planning for retirement is the biggest advantage of life insurance plans. Most of the country’s working population are not covered under retirement plans. The EPF, PPF and other pension plans only cover a small portion of the population. The only way out seem to be life insurance as the life insurance policy helps build up a corpus for retirement and also provides life insurance cover against a myriad of life’s problems at the same time. The best life insurance companies offer a range of payout options. These include lump sum payment, annuities, and monthly payments.
Provide life insurance cover for life’s unfortunate problems: A life insurance policy safeguards against various small or big problems that life may throw at you. Whether it’s providing life insurance cover against hospitalisation, day care, post surgical treatment, or simply helping you build up your wealth in a safe secure manner, a life insurance policy does all this and more. Moreover, the Indian life insurance companies offer a range of policies that help the individuals to buy policies for themselves or their families for a variety of end purposes. In addition, a life insurance cover guards against any unfortunate or unforeseen events such as critical illnesses and even death.