Life Insurance is the best tool to protect your loved ones. It can be seen as a financial decision in a way and an emotional decision too. But most definitely It is about love, caring and future. It will help your family in meeting their critical needs and lead a comfortable life even when you are not around. It could also be given if you are bedridden with a critical illness. And therefore Life insurance is therefore the most essential insurance Policy that you should have in your financial portfolio.
Why Life Insurance
Financial Requirements of your Family
When you are the only earning person in your family, you being no more will cease the income for the family. With no steady source of income for them, their standard of living will fall and they may not be able to meet even the basic needs like education and housing. Therefore, a life insurance Policy of yours will be of help to your family to meet their requirements during such phases of life.
Repayment of Loans and other Borrowing and meeting the expenses
There could be a which you have taken along with your spouse and you may have borrowed money from some sources for meeting some financial requirement. Also, when you have just started your family and your child is still very young. In such situations it is your spouse who who is going to bear the burden of paying off the loan, borrowings and managing the education of children. In such situations your insurance policy is going to be of help to your spouse to manage all these burdens which may arise in your absence.
Life Insurance Policies can be an investment option too
A life insurance Policy can act as a good investment option in some cases. There are such kinds of insurance policies offered by Insurance Companies in India which you can use them for different purposes. As an example some life insurance policies come bundled with retirement benefits, child insurance schemes, whole life insurance plans, Term life insurance plans etc. and this too while offering great life insurance benefits. Except the pure Term plans, which don’t have an investment benefit attached to it, all others are good investment options too.
Life Insurance policies, a good way of saving taxes
Life insurance policies can tax under Section 80C of the IT Act. Many insurance schemes offered by the Insurance companies in India including the life insurance schemes offer tax deductions on Premium payments. The premiums paid on these policies help avail tax deduction and hence they are some of the important tax saving plans that one can consider.
Life Insurance plans can take care of Illnesses and Accidents too
Life insurance policies are are the best bet as protection tool against the financial burden that you will face during a serious illness or accident. They can ensure that you get the best treatment from the best hospitals without worrying about the financial burden.
It supports for getting loans or finances
Besides using your life insurance Policy amount to repay your loans, you can also use the Policy to draw a loan against it, which is an option with some of the plans offered by Insurance Companies in India.
If you are not really certain that your life insurance coverage is in line with what your family needs, we urge you to read more on the subject and understand and make a well informed decision before you get a new life cover or increase your life cover.