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What would happen to our loved ones after we go? Will they be financially secure in our absence? This is an important question that needs answering. Life insurance is something every one of us should consider purchasing.
Its various benefits and advantages make availing of a life insurance policy a prudent choice. Mentioned within are the top 5 benefits of buying life insurance.
Let us dive deep into each of the above benefits in detail below.
Purchasing life insurance can not only give you peace of mind but can also provide your family peace of mind. The payout that your family receives from a life insurance company can help maintain the lifestyle of your family, further a child’s education, or even provide the required additional financial stability to a family. You can sleep soundly that knowing that your family will be completely secure in your absence.
There are situations where the patriarch of the family passes away after taking a loan. The burden of the loan passes down from the patriarch to the family. To avoid this situation, the patriarch can take a life insurance policy, knowing that the family can pay off his loan using the life insurance claim amount.
All life insurance policies do not need the policyholder to pass away to avail of benefits. There are various policies that provide maturity benefits to policyholders. The maturity benefit is paid once the policy term gets over. The policyholder can use this amount to secure his post-retirement life.
A person can avail of an annual tax deduction on premiums paid up to Rs.1.5 Lakhs under section 80C. It would be a wise choice for many to avail a life insurance policy to lower their tax liability.
Life insurance plans have evolved greatly. Gone are the days of traditional life insurance products. Companies now offer a plethora of life insurance products that cater to all requirements. Some of the different life insurance plans are the following:
Term Life Insurance: This is where the nominee will receive the death benefit in case the policyholder dies within the specified policy term.
Whole Life Insurance: A whole life insurance policy will provide protection to the policyholder’s family throughout the lifetime of the policyholder. (generally up to 100 years of age)
Endowment Life Insurance: An endowment life insurance policy will provide a balance of death benefits and savings. This is where the policyholder can avail a lump sum amount on maturity.
ULIP Life Insurance: A ULIP plan offers you the flexibility of death benefits along with the opportunity of participating in the equity and debt markets. The premium collected is invested in the market, and the final amount will be returned to you on maturity.
Child Insurance: This plan caters towards benefiting your child’s future.
Money-Back Life Insurance: Money back policies return your premium paid at regular intervals. Further, in the event of the policyholder’s demise, the entire sum assured will be paid to the nominee.
Retirement Plans: These plans provide a flow of pension to the policyholder post-retirement.