Why Should I Buy Life Insurance?
Updated On Apr 22, 2021
Table of Contents
Life Insurance is financial protection for a human-life contingency, such as death, injury, accident, retirement, etc. Owing to natural and accidental causes, human life is prone to death and disability. When a human life is lost or a person is permanently or temporarily disabled, his/her family loses income, especially if the person is a sole income earner.
A life insurance policy would help you protect the security of your loved ones and help them cover their financial costs such as debts, pay off the loan and retain a good quality of living if anything were to happen to you, you are the only income member of the family.
Why Should I Buy Life Insurance?
In the case of your untimely death, life insurance is a key security coverage for your loved ones. Besides offering financial assistance, the following are the reasons why one must opt for life insurance
1. Meeting Family/Dependents’ Needs
In the case of your death, it helps you protect the financial interests of your dependents/family members, otherwise it would be hard for them to support and take care of their future expenses. Death benefits/payout will assist your family/dependents to meet expenses without having to compromise their lifestyle.
2. Settle the Debts
During a tragedy or your death, you do not want your family to struggle with financial obligations. Being the earning member of your family, your loss would not only affect your family emotionally, but also financially. If you have a good life insurance cover, your dependents/family would have a financial cushion and all your unpaid debts/loans will be taken care of.
3. Retirement Plan
Everyone desires to have a decent retirement plan. By investing in some good life insurance policies, you can fulfil this aim. There are some life insurance policies which offer regular income on a monthly basis, after your retirement. There are tailor-made retirement plans offered by many insurance companies which you can invest in. The sooner you buy one of these retirement plans, the more funds you will have once you plan to retire.
4. Continuity of Business
If you have your own business, then you can certainly must invest in life insurance plan. This short-term insurance plan has incredibly low premiums, but if something happens to you, it gives a generous payout. The sum will assist your business associates settle all your accounts.
5. Tax Benefits and Savings
No matter what kind of life insurance policies you purchase, taxes will be saved. The premium charged for life insurance is eligible for deduction up under Section 80C of the Income Tax Act. Even under Section 10, the death benefit or maturity is exempt from tax (10D). You pay a premium per month if you choose a conventional or unit-linked policy, which is more than what it takes to cover you. This extra money is invested and cash value is accrued. You can either borrow this cash against the policy, or you can opt to sell it or draw income from it.
Take Away
Death is inevitable. The least you can do for your family in the event of emergencies and tragedy is to protect their financial future. Insurance gives you total peace of mind, more than anything. When you've got a life insurance you know you have done everything you can to protect your family's financial future.
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