Why Do You Need Life Insurance?
Experts say that a personal financial plan remains incomplete without planning for life insurance solutions. Having a life cover is important for mainly two reasons. Firstly, it enables you to protect your family against any financial crisis that might arise in the event of your death. Secondly, it helps you deal with financial requirements in some important junctures of your life.
Top 9 Advantages of Life Insurance
There are several advantages of taking life insurance solutions
A life insurance solution offers a wide range of advantages, which are unique to its kind. Here are some major benefits for getting a life plan.
1. Covers Risk - In today’s uncertain world, life is more unsecure than you could imagine. This makes it more important to have a life insurance policy that would provide financial security to your family even after your death.
2. Helps to Meet Your Financial Goals - Some life plans help you meet your financial goals – be it your child’s education, their marriage, building a home, or retirement planning.
3. Helps to Build the Habit of Saving - The contract necessitates you to pay a fixed amount periodically. This builds a saving habit. Regular savings will ensure that a corpus is built over a period of time. This will help meet your financial commitments through the various stages of life.
4. Makes a Profitable Investment - In India, insurance is a highly regulated sector. The government has set up ministries and departments to oversee policy transactions and ensure the safety of policyholders, through various regulations and rules. You can take life insurance solutions through long term instruments, which provide higher returns in the long run. These are a better investment option, compared to short-term instruments that promise higher returns but involve high risks.
5. Provides Assured Income - It is the most popular instruments for retirement planning. This is simply because the money saved during your working period will be utilized to provide a steady source of income during retirement.
6. Provides Protection -These policies help meet the dual need of long term wealth creation with the added protection.
7. Pays Dividends - Insurance companies usually distribute the income from investment among the policyholders through dividends and bonuses.
8. Provides Loan Facility - Some plans even allow you to take loans against the policy from banks and financial institutions.
9. Provides Tax Benefits - Most plans offer attractive tax benefits to the policyholder under Section 80c of the Income Tax Act.
Sudden death of the breadwinner can bring several expenses and financial burdens on your family members. Apart from funeral expenses, they may need to pay debts, pending taxes, and other expenses. Some life covers provide a lump sum death benefit, which is tax free. This benefit also helps pay off debts and can also be reinvested to provide an income for the spouse and children.
Experts say that a personal financial plan remains incomplete without planning for life insurance solutions. Having a life cover is important for mainly two reasons. Firstly, it enables you to protect your family against any financial crisis that might arise in the event of your death. Secondly, it helps you deal with financial requirements in some important junctures of your life.
Top 9 Advantages of Life Insurance
There are several advantages of taking life insurance solutions
A life insurance solution offers a wide range of advantages, which are unique to its kind. Here are some major benefits for getting a life plan.
1. Covers Risk - In today’s uncertain world, life is more unsecure than you could imagine. This makes it more important to have a life insurance policy that would provide financial security to your family even after your death.
2. Helps to Meet Your Financial Goals - Some life plans help you meet your financial goals – be it your child’s education, their marriage, building a home, or retirement planning.
3. Helps to Build the Habit of Saving - The contract necessitates you to pay a fixed amount periodically. This builds a saving habit. Regular savings will ensure that a corpus is built over a period of time. This will help meet your financial commitments through the various stages of life.
4. Makes a Profitable Investment - In India, insurance is a highly regulated sector. The government has set up ministries and departments to oversee policy transactions and ensure the safety of policyholders, through various regulations and rules. You can take life insurance solutions through long term instruments, which provide higher returns in the long run. These are a better investment option, compared to short-term instruments that promise higher returns but involve high risks.
5. Provides Assured Income - It is the most popular instruments for retirement planning. This is simply because the money saved during your working period will be utilized to provide a steady source of income during retirement.
6. Provides Protection -These policies help meet the dual need of long term wealth creation with the added protection.
7. Pays Dividends - Insurance companies usually distribute the income from investment among the policyholders through dividends and bonuses.
8. Provides Loan Facility - Some plans even allow you to take loans against the policy from banks and financial institutions.
9. Provides Tax Benefits - Most plans offer attractive tax benefits to the policyholder under Section 80c of the Income Tax Act.
Sudden death of the breadwinner can bring several expenses and financial burdens on your family members. Apart from funeral expenses, they may need to pay debts, pending taxes, and other expenses. Some life covers provide a lump sum death benefit, which is tax free. This benefit also helps pay off debts and can also be reinvested to provide an income for the spouse and children.
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