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Life insurance secures your loved ones from an uncertain future. Taking a life insurance plan is a way of caring for them even in your absence.
A surprisingly high number of people today continue to believe that their income and current investments can provide for their future. While this may be partly true, this plan is vulnerable to a lot of uncertainties. Most importantly, it leaves your loved ones tasked with facing an uncertain fate in the absence of your income.
This is why it is important to take life insurance to protect your own and your family’s future interests. The following are the salient benefits of life insurance plans:
* The plan has risk coverage. The unthinkable can happen when you least expect it. Your family faces the risk of an uncertain future in case your income is lost owing to illness/accident/your unfortunate demise. However, the life insurance plan money protects your family’s future financial interests for a few years till they can find their footing again.
* It provides death benefits. A superb advantage of life insurance in India is that it provides both a maturity and death benefit in case you take an endowment plan, and a high death benefit/sum assured in case of a term plan. The insurance provider pays your family the sum assured plus the bonus in the unfortunate event of your demise while the plan is still live. Thus, life insurance in India serves to safeguard the interests of your nearest and dearest even when you are not physically present to do it for them.
* It can be bought online. Leading insurance providers in India provide customers the opportunity to buy life insurance online. All it takes is a bit of research across insurance aggregator sites, or asking an insurance expert, to get the names and life insurance policy details of the best plans in the market. Once you decide which plan you wish to buy, you can initiate the purchase online on the insurance provider’s website. Buying life insurance online may also translate into cheaper premiums.
* It provides tax exemption.A hidden benefit of taking life insurance in India is that you get tax rebates under Sec 80C of the Income Tax Act, 1961. Thus, you can reduce your annual tax liability and also get life coverage in return. You can get up to Rs 1,50,000 rebate under Sec 80C – this benefit extends to life insurance premiums, EPF, mutual fund schemes, NSC, PPF and pension fund.
* You can plan your life based on its returns. When you take an endowment policy with a maturity benefit, you can anticipate that you will get X amount of money in a certain year in the future. This is helpful when you plan your future goals, and need money to match the fruition of those goals at that time. Thus, the plan provides life coverage, protects the family’s interests, and also helps you plan important future milestones.