Today, we have various investment options to choose from such as mutual unds, fixed income instruments, gold, real estate and of course, life insurance. Given the plethora of choices, it becomes important to make the right choice while investing your hard earned money. Life insurance is a unique investment that helps you cover against both the risks of surviving old age without any visible means of support, through asset appreciation and premature demise, through asset protection.
The core benefit of life insurance is that the financial security of one’s family remains protected from circumstances such as loss of income due to critical illness or the life assured’s demise. It assures payment of the entire amount assured (along with bonuses, wherever applicable) in case of the life assured’s demise, whereas in other savings schemes, only the amount saved (with interest) is payable.
Life insurance is the only investment option that offers products customized to suit the varying needs of investors based on their life stage, ensuring that the financial goals of that life stage are met.
It allows ‘thrift’, that is, it allows long term savings because premium payments can be made through an easy installment facility. Premium payments can be monthly, six monthly or yearly. Some insurance schemes provide a convenient method of paying premium each month by deducting the amount from your income.
The best way to enjoy deductions on income tax and wealth tax is through life insurance. The deductions are available for amounts paid by way of premium for life insurance subject to the prevailing income tax rates.
