Life insurance is a crucial tool that provides financial security and peace of mind for you and your family. Here are 10 benefits of life insurance that tells you why buying it should be a key part of your financial planning.
Financial Security for Dependents
A life insurance policy ensures your dependents are financially secure even in your absence. It is a crucial asset for the primary breadwinner.
Debt Repayment
Life insurance can help pay off debts such as a home loan, car loan, or a personal loan, preventing your family from bearing the financial burden in your absence.
Wealth Creation
Some life insurance plans, such as a term insurance policy, keep their features simple, accessible, and focus on protecting your loved ones. Certain types of life insurance policies, such as a ULIP (Unit Linked Insurance Plan) let you invest and achieve your long-term financial goals. In addition, it also offers a life cover that ensures financial security for your family in the event of an unfortunate incident. This can help you to build wealth over time, creating financial stability.
Additional Benefits
You can have additional benefits, in the form of riders attached to your base policy, to receive more benefits.
Retirement Planning
Policies like pension plans or guaranteed return plans can act as a source of income during retirement.
Tax Benefits
Premiums paid towards life insurance may be eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, the death benefit you may receive after the life insurance claim is made is tax-free under Section 10(10D).
Critical Illness Coverage
You can avail of critical Illness (CI) coverage provided in the form of riders that can be attached to the base policy. A Critical illness rider provides financial assistance on the diagnosis of a Critical illness during the policy term.
Peace of Mind
Knowing that your family will be financially secure in your absence, provides immense peace of mind, allowing you to focus on your present without worrying about the future.
Financial Perspective
A life insurance calculator can help you determine the right amount of coverage based on your financial situation and goals. When you use such a tool, you can get a better idea of your personal financial situation and how things could turn out in the days to come.
Legacy Planning
Life insurance can be used to leave a legacy for your heirs, ensuring that they are taken care of and can continue your financial legacy.
These top 10 reasons to buy life insurance ensure your goals, from financial security to tax savings and investment opportunities, are fulfilled. By using a life insurance calculator, you can tailor your policy to meet your specific needs, ensuring you and your loved ones are well-protected.
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