Why Is It Important To Have Life Insurance?
Updated On Apr 26, 2021
Table of Contents
Life Insurance is a financial agreement under which the insurer promises to pay a sum of money on the unexpected death of the insured person or after the plan’s maturity in exchange for the premiums paid. Life Insurance can be very helpful and useful if one chooses a suitable Life Insurance plan at the correct time.
The unpredictability of our life makes Life Insurance important and necessary. Thus, to keep our loved ones safe and secure even after your untimely demise, you must keep them shielded with an insurance cover for your life. Life Insurance offers numerous benefits, some of them as as follows -
Also Read:- Here is Your Guide To Different Life Insurance Plans
1. Financial Stability
Financial stability is always a primary necessity during your lifetime. At your retirement or even at the instance of your untimely demise, your family is able to meet their essential necessities, the plan ensures it with its plenty of benefits. Your liabilities will be no more a burden and you could save a handful amount of money.
2. Protection For Children’s Future
Children's Future is a primary responsibility for a person and Life Insurance safeguard it with its variety of benefits. Life Insurance Plan provides you an option to get life stage benefits, child education benefits and much more. The sum assured you get, makes you meet up your child's essential future expenses like higher education and marriage expenses.
3. Peace of Mind
Life Insurance policies provide you a peace of mind when it comes to you and your family's future. Your unexpected death does not leave your family in any insecurity, the plan ensures it usually with large death cover enough to provide them stability. Flexibility and long term benefits of these plans provide the policy holder to customise his plan according to his/her needs.
4. Wealth Creation
If you're an investor and want to create a good saving output for your future along with a risk cover, Life Insurance plans like ULIPs provide you a choice for your wealth creation. These plans make you secure your hard earned money as per your choice along with a long term return.
5. Tax Saving
Life Insurance is considered as one of the tax saving options among investors. Apart from protection, the premiums you pay are exempted from tax under section 80C of Income Tax Act. Also the death and maturity benefits you receive are also tax-free.
6. Retirement Planning
At the time of retirement you are deprived of your income, not your expenses. Life Insurance plans provide maturity benefits along with a monthly income option which provides you a stable financial support if your savings aren't too much.
7. Ease of Loan Burden
A person during his lifetime lends many kinds of loans for fulfilling his short-term goals. It is possible that in case of your unexpected death, your loved ones may be incapable to pay off your debts. Here a Life Insurance Plan provides them a significant sum assured to get rid of such financial insecurities.
Conclusion
The money you pay to the insurance company as premium is after all your hard-earned savings. So, if you invest it in the right slot in accordance to your needs, a right Life Insurance plan can be a one-stop solution to all your future financial problems. Post retirement you can be self dependent against all your financial challenges. Is there a need to buy a Life Insurance plan, is totally your choice but securing your family is your responsibility and you can easily put off this burden by getting a Life Insurance plan.
Must Check:- How to Make Changes in HDFC Life Insurance Policy Online?
