Sunday 27 December 2020

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.


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.




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Why do you need life insurance | Benefits of Life Insurance