8 Reasons why you need to buy a Life Insurance policy

The term “Life Insurance” is known to almost everyone in India. Due to the increased scope of digitization, the availability of online insurance policy and increasing benefits, you can easily compare insurance policies and buy the best one for you. But still with so much awareness and improvements, very few people go for a life insurance policy. The main reason behind this is that most of the people don’t understand the importance of life insurance. They don’t know why to buy a life insurance.

A life insurance can prove to be the best decision which you have taken towards making your life and those of loved ones, financially protected and stable. Not only for people with family, but it is very much important for those young people also who are concerned about the future and want it to be safe and secure.

 Before buying a life insurance, you need to understand its importance in your life and through this article, we will try to understand the basic 8 reason for buying a life insurance plan:-

Protect your loved ones

Everyone works hard to give the best life to their loved ones.  They want their children to read in the best school or college,  save money for getting their child married in the best way possible, but what if one day, due to an unfortunate event, you are no longer for them. All your care and love will get overcast by the financial crisis and an uncertain future. Your children might have to leave studies and start working. Yes, this sounds like a nightmare, but you can avoid all this by taking a life insurance policy, because life insurance covers the risk of death and provides financial protection for your family. Life insurance can act as regular income for your family if you die.

Cover risk against Debt

Debt, during your life is a huge responsibility for you and unpaid debts after your life becomes a burden for your dependents.  Life insurance plays a key role in paying your debts by your dependents even if you are not there for them. By claiming the sum assured, your dependents have to not worry about the loans which you have taken and it can be paid easily.

Investment with low risk

Everyone invests and expect a maximum return out of the money spent with low risk. But the main problem arises when you think upon deciding the form of investment. Life insurance is a secure option for investment as the sum assured keeps on increasing with bonus, linked companies fund (if opted). It is a risk free option to invest which provide guaranteed returns along with risk cover.

Helping hand during illness

During illness, everyone needs a helping hand, in the form of both financial and physical. While being surrounded by your loved ones, the only form you have to worry about is financial. An illness doesn’t only break you physically, but financially also. A life insurance can provide you with required financial help during your illness to cover, loss of income, bills of hospitalization etc.

Retirement plan

Needs never stop, even after your retirement and to fulfill your needs you require a retirement plan.  With all other benefits, Life insurance can be your best retirement plan because it provides regular income after your retirement.

Acts as a Collateral

Life insurance is like an asset. It can be used to as a collateral to secure a loan. Loan is required at crucial steps of your life, like starting a new business or buying a home and the main issue which arises while taking a loan is your credibility. A life insurance policy increases your credibility for getting a loan. Different life insurance policies have different limit of loan which you can take against it and it will not affect your insurance policy anyway.

Peace of Mind
Everyone needs peace of mind and it is snatched by future worries. The Life insurance Policy provides you the peace of mind for the future.

Tax benefit

A tax rebate is everybody’s wish and it can be completed by Life insurance policy. Premiums paid and the amount received on maturity or death is tax deductible under section 80C and 10 (10 D) of the Income Tax act 1961.

Conclusion

A peace of mind with financial stability for present and future is what everybody wishes for and Life insurance policy provides you with the same.  You can compare and choose from the best life insurance policies in India. Protection for loved ones with a lot of benefits is what a life insurance policy offers you and these features properly justifies the reason to buy life insurance.