Reasons to Buy Life Insurance
Published On Jun 07, 2021 10:00 AM By InsuranceDekho
Table of Contents
- What is a ‘Life Insurance’?
- Reasons to Buy Life Insurance Plans
Life is very unforeseeable. One may never know what will happen in the very next moment and change everything around you. Ensuring that you are financially secured and your family does not need to be financially dependent on anybody if you're not around is a thought that runs through every individual. It is very essential to have life insurance because uncertainties do not announce and arrive. For you to understand the reasons to purchase you need what life insurance is.
What is a ‘Life Insurance’?
Life insurance acts as a shield for the policyholder and the family members of the policyholder in the event of financial insecurities. Life insurance promises to offer the sum assured to the policyholder’s family in the event of the policyholder's death. Other than death benefits life insurance also offers maturity/survival benefits to the policyholder if he/she survives the whole policy term but life insurance also has other benefits and a potential buyer must understand what benefits come along when you purchase a life insurance plan.
Reasons to Buy Life Insurance Plans
Following are the reasons that will help you understand benefits of purchasing life insurance plans:
Life Insurance Offers Life CoverA life insurance policy provides a sum assured as the death benefit in the event of demise of the policyholder, thereby providing financial security to the insured family. A life insurance thus, acts as a shield and ensures that goals and aspirations of the insured’s family members are not affected even in his/her absence. The policyholder has to pay regular premiums to keep the policy in force so that he/she can avail this benefit.
Life Insurance Creates a Sense of Peace of MindLife Insurance helps creating a sense of peace of mind for an individual because it ensures that the policyholder gets life coverage and also ensures that the policyholder’s loved ones are financially secured at the time of untimely demise of the policyholder. Life insurance also provides financial aid at the time medical emergencies that decreases the stress to arrange funds right at the same time.
Life Insurance Offers Tax BenefitsLife insurance premiums qualify for tax deduction under Section 80C of the Income Tax Act. Also, as per Section 10D, the sum assured received on maturity of the life insurance plan is tax-free if the premium is up to 10% of the sum assured or the sum assured is at least 10 times of the premium amount.
Life Insurance Offers Availability of Loans Against Life Insurance PolicyIn desperate times life insurance plans lets you take a loan on the existing insurance policy to overcome any of your urgent requirements. You can borrow a certain amount without affecting the benefits that are already being offered in the life insurance. Availability of loan on insurance plan is available for some insurance plans only.
Some Life Insurance Plans Come with Assured Income BenefitsLife insurance plans such as Money-Back Insurance plans provide an option to create regular income in intervals for the insured’s loved ones in the event of untimely death of the policyholder. This ensures that the insured's family member is financially independent and secured.
Some Life Insurance Offer Critical Illness CoverSome life insurance plans offer critical illness cover in exchange for a price. Critical illness can sometimes be inbuilt in the life insurance plan or it can be purchased for additional coverage along with benefits under life insurance plan. Critical illness cover provides financial support at the time of diagnosis of any critical illness that is listed under the insurance company’s. This cover also provides financial aid for expenses made at the hospital for treatment.
Everything has pros and cons to it. So does life insurance, before you invest your money in any life insurance you must know the benefits of investing your money in it. Above discussed are some of the reasons that life insurance is claimed to be beneficial to many. Life insurance lets you secure your life and save money for any unforeseeable events to ensure your family maintains their lifestyle.
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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.