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Is your family financially dependent on you? Do you want to financially protect your family against all odds of life? If your answer is yes to the above questions, then this article is certainly for you.
Let us understand the benefits of life insurance. When you buy a life insurance policy, you not only gift your loved ones a financially secured future but also a stress-free life ahead.
Let us jump into the importance of life insurance. The benefits of life insurance are as follows:
Having a life insurance policy provides you with life coverage. In the event of the sudden demise of the insured, the nominees of the policy will be paid the sum assured as a death benefit.
The nominees of the policy will be paid the full amount of sum assured as well as any accrued bonus over time, keeping your family’s finances secured even in your absence.
Many life insurance plans in the market offer you the additional benefit of generating additional wealth for your family. They are generally known as ULIP or Unit Linked Life Insurance Plans. These plans, along with providing you a life coverage, also invest a certain portion of your premium into various investment classes such as debt, equities, and hybrid investments to garner better returns and grow your capital.
People who have a life insurance policy can also avail themselves of mortgages based on their life insurance policy. You can borrow the sum assured or a certain percentage of cash value according to the policy provisions. This advantage helps you in sudden times of crisis when you are in urgent need of money.
Almost all life insurance policies come with the advantage of tax benefits under Section 80C and 10(10D) of The Income Tax Act 1961. It offers you a tax deduction on premiums and provides a tax-free sum assured to the policyholder. You can get a maximum tax deduction of Rs.1,50,000 under Section 80C.
Certain life insurance policies provide the policyholder with regular income payouts at certain intervals. In this case, your family will receive guaranteed income regularly that will help them in their daily expenses like rent, daily bills, educational expenses, household expenses, and so on in the absence/death of the insured individual.
This is a very beneficial point for citizens nearing retirement. Your life insurance policy can be a source of regular income in the form of an annuity during your retirement. Many life insurance policies provide this benefit.
In the event, the policyholder is unable to repay his loan due to an unforeseen incident like death or disability, his/her family may repay the loan amount using the money received from the policyholder’s life insurance policy.
Riders can be bought additionally with the base life insurance plan. These riders provide deeper financial security or coverage to the policyholder. It covers extra risks that are not covered in the initial base policy.
Due to the above-mentioned benefits, it is important to provide financial safety and peace of mind to you and your loved ones by buying a life insurance policy. Life is a valuable gift, it is imperative to secure every part of it as much as possible. Invest in your peace of mind today!
This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.