You insure your car and your home. But nothing is more important than your life and your ability to make a living. So it should be a certainty that you invest in the biggest asset- you!
As we move through life, find a partner, raise a family, and maybe start a business, the importance of life insurance in a long term plan increases. 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.
1. It is part of a sound financial plan.
Insurance is a great investment channel as well. Life insurance plans facilitates systematic savings by allocating funds in the form of premium every year. At the end of the policy term, the policy holder can reap the benefits by getting a lump sum payout that will result in a great wealth corpus.
Insurance encourages savings by reducing your expenses in the long run. You can avoid out of pocket payments for unfortunate events like medical ailments, loss of your bike, accidents and more. It is also a great tax saving tool that helps you reduce your tax burden.
2. Secure future goals.
Your present might be stable with your steady flow of income that is good enough to meet your family’s lifestyle needs. But, what will happen, if you suddenly have to face the end of your life? Will your family be able to meet their future needs without you?
This is where a term insurance plan comes in handy. Secure the future of your family and buy a term insurance policy that will help your nominee or dependent receive a lump sum or monthly payout to help them deal with their financial necessities. Term insurance is one of the life insurance plans offers life coverage to the individual for a specified term with affordable premium cost.
3. Life insurance supplements your retirement goals.
Who wouldn't like their retirement savings to last until they do? With a life insurance plan, you can ensure you have a regular stream of income every month. Putting money in an annuity is like a pension plan - put in some money regularly in a life insurance product and enjoy a steady income every month even after retirement.
4. Looking after your loved ones even after you're gone.
This is the most important aspect of life insurance that one needs to factor in. Your family is dependent on you and you certainly don't want to let them down. Whether it's for replacing lost income, paying for your child's education or making sure your spouse get the much-needed financial security, life insurance could save the day for your surviving dependents.
5. Peace of mind.
No amount of money can replace your health and well being – or the role you play in your family. But you can at least have peace of mind knowing that if anything happened to you, your family’s financial security is assisted by insurance.
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