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THE
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2 mins Read | 10 Months Ago

Five Reasons why you should buy Life Insurance

Five Reasons why you should buy Life Insurance

Introduction:

Life insurance is one of the most important financial investments available in the market today however only a limited percentage of the Indian population has caught onto its virtues. Its importance lies in the fact that it recognizes that life is uncertain, and a premature death of an individual owing to illness or accident not only impacts the family emotionally but also can lead to major financial stress. If the deceased individual n is the sole breadwinner of their family or contributes financially to the household earnings, life for the surviving family members can be particularly brutal.

Read on to understand 5 major reasons as to why you should avail of a life insurance plan if you haven’t already.

Reason #1. Financial security for those you leave behind

One of the most important features of life insurance is that it helps you provide for those that are dependent on you financially following your death. Even once you die, your family might still be dependent on what you leave behind for them. A sudden death might leave them in the lurch and unable to pay for their daily expenses. This holds particularly true in the case of families that have single breadwinners. Expenses ranging from your child’s education to your partner’s need for financial security must each be accounted for and life insurance provides that much-needed stability during uncertain times that death might prompt.

Reason #2. Life insurance helps tackle debt

Should you die with active debts tethered to your name, your family then becomes responsible for having to repay these owed dues. Ideally, you wouldn’t voluntarily want to put a financial burden on your family and you wouldn’t want them to have to deal with unpaid loans. With the right life insurance plan issued in your name, however, debts pertaining to your home, car, credit cards, or a personal loan taken care of with the claim amount received from the life insurance company in case of your death.

If you have taken an investment linked insurance product and survive the policy term, the maturity amount can also be used to pay off debt and liabilities .

Reason #3. Helps Finance Long-Term Goals

Life insurance policies allow you to fulfill long-term financial goals you might have which may pertain to buying your own home, children’s education or planning for your retirement as a long-term investment option. Life insurance investment plans allows you to invest your money in diverse ways in different funds. Before investing in an investment-linked life insurance policy it is important to do ample research and read the fine print in order to be aware of the potential returns and investment risks associated with the same.

Reason #4 Retirement planning with life insurance

Life insurance annuity products allow you to continue to have a regular source of income each month following your retirement. The importance of this cannot be dismissed as once you retire you no longer earn a salary each month and daily expenses still need to be accounted for. Customers can lock annuity rates today and guaranteed regular income is calculated based on this rate. This safeguards your retirement income from any market-linked volatility

Reason #5 Insurance is less expensive at a younger age

Although each millennial might not require life insurance immediately, by signing up for a life insurance policy at a young age, you can get a term insurance policy at a lower premium while you make arrangements for your future when your expenses would rise. These expenses can pertain to spending money on your child’s higher education or their marriage or can focus on your retirement funds. If you have dependents or have a loan that features your parents as co-signers, you must consider a term life insurance policy to protect the family ‘s financial future. Since premiums for a term plan depend on your age, at a younger age when you aren’t yet married, life insurance policies are less expensive to avail of.

Conclusion:

Not only is life insurance important as it provides you with multiple benefits but it helps provide your beneficiaries with financial security in the event that you are no longer around to take care of them financially

Reference:

https://www.businesstoday.in/personal-finance/insurance/story/10-reasons-you-need-to-buy-life-insurance-56043-2015-11-14

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