Why do you need life insurance | Benefits of Life Insurance
Life insurance has many
purposes. The most important, life insurance ensures that your family will get
financial support when you are no longer around to care for them. If someone
dies during his/her earning years, his/her family could suffer a huge economic
loss. With the loss of a loved one, if the family is also left without money to
meet their daily expenses and future needs. Then the family has to cope with so many crises at the same time. In this situation, the life insurance policy provides
cash to the family to continue living comfortably.
You will also get the peace of mind by knowing the fact that financial help will be available to your family when you are no longer around them. You should consider long-term personal situations like marriage, the birth of a child, children education, retirement etc. before buying a suitable life insurance plan to fulfil future needs. In this post, I would like to tell you about the benefits of life insurance.
Benefits of Life Insurance
Below are the few benefits of life insurance.
1. Brings peace of mind
Having a life insurance will
give you the peace of mind. Life is uncertain and life insurance can provide
financial help to your family when you are no longer around them. This is the
fact that no money can replace the loss of a person but at least your family will be able to manage their routine expenses
and children future needs. You can also plan your retirement by taking a pension plan in which you will get an income
month after month.
2. Protect your family
Life insurance is about
protecting your loved ones. Most of the parents want that their children will
be well taken care of in future, get a good
education and every happiness of life when you are no longer around them.
Nothing can replace a loved one but advance planning with life insurance can
make things easier for those you leave behind. Life Insurance can help your
dependents cover any financial responsibilities that are left after your death.
3. Tax Benefits
Buying life insurance policy
is a good way of saving tax. The policyholder
is eligible for tax benefits under various sections of the Income Tax Act. Life
insurance is the most common and effective tax planning instrument in India. If
you buy life insurance policies, you will get deduction under Section 80C,
80CCC and 80D of the income tax act. The withdrawals of life insurance policies
are exempt under Sec 10(10D), subject to norms prescribed in that section.
4. Helps in savings
Everyone has some goals in
life for which we need to save. Life insurance is an investment option that
offers a variety of products for everyone. Life insurance is a disciplined
saving. Paying a little money as insurance premium every month will help you to
accumulate funds. What is even better is that this little you pay every month
just keeps growing. So years from now you will have enough accumulated wealth
to fulfill your bigger and long-term need.
You may also like to read: Mediclaim policy | Medical insurance | Health insurance
You may also like to read: Term insurance | How to choose term insurance
You may also like to read: HDFC Life Pension Guaranteed Plan | Features & Benefits
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Why do you need life insurance | Benefits of Life Insurance
Why do you need life insurance | Benefits of Life Insurance
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