Introduction to Life Insurance:
India 20 October 2016: Insurance is vital. No matter whether you are an employee or businessman, or you were already saving for retirement or for constructing a home, life’s unexpected problems can quickly derail all your efforts and put you and your dear ones on hardships. That is why Life Insurance is important for the financial plan. It is a promise for your life and to your loved ones.
As a matter of fact, 3 in 10 do not have any form of personal life insurance in India. 50% or more of family’s income is lost because of serious injury, chronic illness or premature death of a parent.
Below are 10 reasons why you need to buy life insurance, it will help you to have a bigger picture of life insurance explaining why YOU need it.
1. LIFE INSURANCE PROTECT YOUR FAMILY AND LOVED ONESRemember your promise on the marriage day that you have given to your spouse to be always with them in every nick of time. It is time for you to keep the promise and secure their future. If your family depends on your financial support, then you must buy life insurance. It protects your spouse and children even after you die. Especially it is important for people who have young kids or dependent parents.
2. LIFE INSURANCE TO PAY OFF DEBTS AND OTHER EXPENSESWe don’t want our family to suffer from financial liabilities during a crisis. Every family needs insurance to cover the outstanding debts like home loan, car loan, credit cards and mortgage. In addition to that, it covers your family’s daily expenses. It is a safe method to pay the debts or any other expenses.
Parents want the best for their children in every possible way. When you are not with them, insurance will take care of their needs such as education, getting married or starting a new venture. On top of the emotional toll with your absence, you don’t want them to end up in debts with funeral expenses. It is a way of expressing your love and care even you are not around them.
3. LIFE INSURANCE TO ADD MORE FINANCIAL SECURITY
4. LIFE INSURANCE FOR RETIREMENT SAVINGSIt becomes difficult to manage the financial problems in retirement stage. If you don’t want to depend on anyone or don’t want to fall into debts, then you have to buy retirement savings. If you put your money in the annuity-like pension plan, then you can enjoy a steady income every month even after your retirement.
5. LIFE INSURANCE FOR TAX-SAVING PURPOSES:Another reason to buy an insurance policy is to save from taxes. Whatever plan you buy, you could be protected from taxes. As per the Section 80C, you are eligible for a maximum tax benefit of Rs.1.5 lakh and under Section 10(D) of the Income Tax Act, 1961 and tax-free proceeds on death/maturity. Many buy insurance for this purpose and ensure to buy a permanent policy to benefit from the coverage until the end of their life.
6. LIFE INSURANCE HELPS ACHIEVE LONG-TERM GOALS:It is a tool that helps you to achieve long term goals such as marriage, buying a home, education. It comes with a variety of options that comes with different types of policies. But be aware of the potential risks and returns that accompany an investment linked policy.
If you suffer from any terminal illness, you can request a withdrawal or a loan from the life insurance. Thus provides the necessary financial support. But it may not apply if you develop any serious illness. Sometimes life insurance will not be able to provide the support to the extent you need it. So check the policies and its terms properly.
7. LIFE INSURANCE PROTECTS WHEN YOU ARE ILL
Life insurance is not only for family and personal reasons. It is also useful to take care of your business and protects your business from financial loss. For example, in the case of financial crisis or instability or when a business partner dies it helps you to keep the operations going until the things will settle down. There are two types of business insurance policies. One is a term insurance policy and life insurance policy. These help to strengthen your financial position.
8. LIFE INSURANCE TAKE CARE OF BUSINESS:
9. LIFE INSURANCE FINANCIAL ASSETIn today’s world, Insurance policies are not only covering safety purposes but are also best investment options. Life insurance is the best asset which helps you to increase your credit or health insurance and get a loan. Many policies come with cash value which means it cannot be touched by creditors when bankruptcy occurs. It also helps you to buy property or start any new venture.
10. LIFE INSURANCE TO LEAVE AN INHERITANCEIf you don’t have any asset that you can pass to your children, then you can create an inheritance buying life insurance and naming them as nominees. It is a great way to set your kids up for a stable financial future and provide for any monetary needs that will arise. One should buy life insurance to protect your loved ones as it is a way to show the love and affection towards them.
Understanding Importance of Insurance is commendable. As it plays a key role in your financial well-being, tax saving and acts as a savior in difficult times. You should consider purchase life insurance policies early in life when you still young and free of any illnesses.
Tighten your belts a little to find out best suitable life insurance plan for you and your loved ones. That’s because insurance is all about providing a financial safety net that helps you to take care of yourself and those you love when you need it the most.
Select the best type of policy which suits your circumstances and it is good to take help from a professional and knowledgeable insurance agent. Whichever you select ensure that satisfies all your desires, objectives and needs in the long term and short term.
A carefully executed life insurance policy can help prepare for life's uncertainties and give peace of mind knowing that the future of those who rely on you is secure.
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