Sound policy is often ignored because we think it is not required and what could possibly happen to us?
A mishap/accident can leave us feeling fearful of the future-both for us & our families-which leads us to believe life insurance is not worth the money.
The most effective option for ensuring an individual's financial security and protection is life insurance. A life insurance policy has a number of advantages. Let us look at them briefly:
- Offers Risk Cover: A high risk cover protects you and your family in the event of an unfortunate incident.
- Death Benefits: If a loved one passes suddenly, the dependents are left grieving, and financial worries should be the last thing on their minds. Having a sufficient life insurance policy ensures that one's family will be protected in the event of such an event. If applicable, the insurer pays out the sum assured to the bereaved family, along with any bonus or profits.
- Benefits of Taxation: A tax rebate is available to investors in certain specified instruments under Section 80C of the Income Tax Act. Furthermore, Section 80C is an effective way for salaried individuals to reduce their tax burden. Because life insurance premiums are taken into account, you can reduce your tax burden.
- Loan Facility: You can apply for a loan if you need it during an emergency, as per the policy provisions. You can take a loan based on a percentage of the amount assured on your life insurance policy.
- Assured Returns/Income Benefits: With money back benefits offered by certain policies, you will be able to keep your family secure with regular & timely payouts. Rent, bills, loans, and other regular expenses are met with this income.
- The Life Stages Planning Process: Through insurance, you can effectively plan for every stage of life and every need. The purpose of life insurance is to provide solid financial support as a long-term investment.
- Safe Investment: You get paid back on time for the investments you make in life insurance. The money gets returned to the policyholders/beneficiaries either at the end of the policy term or at the time of death, whichever comes first.
The Importance of It
If you wish to protect your dependents or family from economic hardship in your absence, life insurance is of paramount importance.
Many people consider it an expense & choose not to consider its importance at all. A will is an invaluable tool that can help you build wealth while also protecting you and your family.
Person on their own.
Having no immediate dependents does not mean that you do not need life insurance. As a result, you need to factor in many costs and earn additional income to fulfill them. Life insurance protects your income while allowing you to meet these costs.
Among family members
When an individual passes away unexpectedly, the surviving family members are left to deal with a great deal of stress and trauma. No matter what, there will always be expenses to contend with, whether it is rent, childcare, loans, etc. As a result, your loved ones are left in financial hardship, due to the loss of income. Hence, life insurance is an essential consideration for every family.