5 Reasons to Buy a Life Insurance Plan
We never really think about death when we’re young and healthy. But one of the biggest truths of life is death can knock our doors irrespective of how young or healthy we are. While it can take several years for your family to overcome the emotional loss of your death, you can at least make some arrangements to provide them with the financial help they’d need.
A life insurance is that protective blanket that can help you protect your family from financial hardships even when you’re not around. Here are some of the most important reasons why you should consider buying a life insurance-
1. Looking After Your Family Even After You’re No More
Needless to say, the most important reason to buy life insurance is to ensure the financial safety of your family. This is especially true if you’re the sole breadwinner of the family.
While no amount of money can ever compensate for their loss, there is no denying the fact that the financial aid can provide them some strength and comfort once you’re no more.
2. Repaying Your Loans
Home loans, car loans, and personal loans are now a go-to option for working professionals in India. In case of your sudden demise, you’d surely not want to leave your loans to your family.
With the help of life insurance policies, your loved ones would not have to worry about your loans. The coverage received after your death can be used for repaying your loans.
3. Source of Income After Retirement
There are now a host of innovative offerings from insurance providers. You can now find life insurance policies with retirement benefits.
After paying premiums for a fixed duration, these policies provide a monthly pension to you while still maintaining the death cover. This can be an excellent way for you to have a constant source of income after you retire.
4. Health Cover
There are basic life insurance products and then there are other life insurance schemes that come with health cover benefits. Such policies cover you financially if you suffer from life-threatening conditions like cancer, heart-related problems, and a host of other illnesses.
Many of the insurance providers also offer additional riders for a number of illnesses. With the rising cost of healthcare, this can be a great way to enjoy the benefits of life insurance as well as a health insurance.
5. Tax Benefits
While the importance of tax savings is not as high as the benefits discussed above, it is still of valuable assistance. Under the Indian IT Act, Section 80C, you can claim tax deductions up to INR. 1.5 lakhs in a financial year and the life insurance premiums can be added to the exemption amount. Moreover, if you buy life insurance with built-in health cover or purchase additional health-related riders, you can gain additional tax benefits under Section 80D as well.
Life Insurance: One Policy, Many Benefits
As you can see, there are several ways in which a life insurance can be helpful to you and your loved ones. Try to buy term insurance or full life insurance as early in life as possible as the policies get more expensive with age.
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