To secure your family’s financial future by buying a life insurance policy. Besides, do not overlook benefits of a life insurance during your lifetime, especially if you are young.
We list 10 compelling reasons for buying a life insurance policy.
LOOKING AFTER YOUR LOVED ONES EVEN AFTER YOU’RE GONE : This is the most important aspect of life insurance that one needs to factor in. Your family is dependent on you even after you’re gone and you certainly don’t want to let them down. Whether it’s for replacing lost income, paying for your child’s education or making sure your spouse get the much-needed financial security, life insurance could save the day for your surviving dependents.
DEALING WITH DEBT : You don’t want your family to deal with financial liabilities during a crisis. Any outstanding debt-a home loan, auto loan, personal loan, or a loan on credit cards-will be taken care of if you happen to buy the right life insurance policy.
HELPS ACHIEVE LONG-TERM GOALS : Since it is an instrument that keeps you invested for the long term, it would help you achieve your long-term goals such as buying a home or planning your retirement. It also provides you with diverse investment options that come along with different types of policies.
LIFE INSURANCE SUPPLEMENTS YOUR RETIREMENT GOALS : Who wouldn’t like their retirement savings to last until they do? With a life insurance plan, you can ensure you have a regular stream of income every month. Putting money in an annuity is like a pension plan- put in some money regularly in a life insurance product and enjoy a steady income every month even after retirement.
BUYING INSURANCE IS CHEAPER WHEN YOU’RE YOUNGER : If you’re young, healthy and have a good family health history, your insurability is at its peak, and you can get the best rates on your life insurance policy.
YOUR BUSINESS IS ALSO TAKEN CARE OF TAX-SAVING PURPOSES : Life insurance isn’t only for yourself and your family. Some insurance policies also take care of your business. If you own a business, then your business partner can purchase your portion of the business without hassle. Your business partner( s) will enter a buy-sell agreement and the payout would go to the deceased partner’s nominees, but without giving them a stake in the company.
TOOL FOR FORCED SAVINGS : If you choose a traditional or unit-liked policy, you pay a premium each month, which is higher than what it costs to insure you. This bit of extra money is invested and it accrues cash value. This cash can then be borrowed against the policy or you can choose to sell it or draw income from it.
YOU MAY NOT BE QUALIFIED FOR IT LATER : Life insurance policies run on uncertainties. You may be healthy now and paying a premium for life insurance may seem to be an added financial burden, but if you suddenly fall ill, you may not be allowed to but a life insurance policy.
PEACE OF MIND: Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you’ve done all you can to help them tide over difficult times
TAX-SAVING PURPOSES : You could save taxes with insurance policies irrespective of what plan you buy. The premium you pay on an insurance policy is eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C, and for tax-free proceeds on death/maturity under Section 10 (D) of the Income Tax Act, 1961.