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5 Reasons Why You Should Purchase Life Insurance

Updated On Jul 17, 2021

One cannot plan financially for the unpredictable event that may occur in their lives. Life insurance can be an essential part of your financial planning. Life insurance plans provide financial cover to life assured’s family incase of an unforeseen demise of the life assured during the policy tenure. In difficult times life insurance can help you ensure financial stability and security of your family in your absence. 

Below mentioned are some major reasons that justify why one should purchase life insurance to stay protected from uncertainties of life.

5 Reasons Why You Should Purchase Life Insurance  

Following are some reasons that justify why you should purchase life insurance:

1. Financial Protection of Your Family

As a sole breadwinner of the family all the responsibilities fall on you such as child’s education, health emergencies, daily financial expenses. If an unforeseen event takes place, life insurance can provide financial support to overcome the circumstances. In case of an unforeseen demise of the life assured, the insurance company provides a death benefit to the family of the life assured. Life insurance can help you insure financial protection of your family in your absence. 

2. Coverage at an Affordable Premiums

Life insurance plans offer extensive coverage at an affordable price. Life insurance plans offer life cover and financial protection to your family at a nominal cost. 

3. Wealth Creation

Apart from providing life cover some life insurance plans also act as an investment tool. Insurance plans such as ULIPs provide an opportunity to grow your wealth by investing your money in different market-linked fund options. These types of insurance plans help you accumulate funds to fulfill your future financial requirements. 

4. Multiple Add-Ons

Another good reason to purchase a life insurance plan is that you add riders to your life insurance plan. Riders are additional coverages that can be added to your life insurance plan to enhance the power of the base coverage of your policy. These riders can be purchased at an additional cost. Some common riders are Critical Illness rider, Accidental Death Benefit, Accidental Total and Permanent Disability etc.

5. Tax Benefits

Most common reason why people purchase life insurance is to save tax. Under life insurance plans you can avail the benefit of tax exemptions. Premiums paid towards life insurance and life insurance riders are eligible for tax exemptions under Section 80C and 10(10D) of the Income Tax Act, 1961.

Conclusion

Financial security of the family is one of the reasons why people purchase life insurance plans. Life insurance plans can help you attain financial security for your family even in your absence. Life insurance can be a very important step towards financial planning for a financially secured future for your family. 

Also read - Can I Take Terminal Illness Cover With Term Insurance? 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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