Last updated: December 11th, 2017
Life insurance is an important and necessary part of our financial plan. We already know that; but what are the benefits of having a life insurance? In case you are still undecided about buying life insurance, a look at this list will help you decide. Let’s see what benefits a life insurance policy can provide.
1. Secure your loved ones’ future
If something unfortunate were to happen to you, you surely wouldn’t want your loved ones to abandon their dreams and live a life of poverty, would you? The money from a life insurance would replace part of your income and secure your family financially. They can move on with their lives and would not have to make major sacrifices. Your children would continue with their education, your spouse would be able to run household expenses smoothly and their lives would not be reduced to a daily fight for survival.
2. Protection against financial liabilities
If you have a debt, for eg a home loan, you have a financial liability. A life insurance would serve as a protection against this if something were to happen to you. Your family would not have to worry about how to pay back the loan as the money from the insurance will take care of that. Nowadays, most big ticket loans specifically ask you to take a life insurance along with the loan. It is for this very purpose.
3. Get cheaper insurance when you are young
If you delay getting a life insurance, the cost of buying one will increase with each passing birthday. Life insurance premiums are much cheaper when you are younger and increases as you grow older. So it makes sense to buy a long term life insurance at a cheaper rate while you are still young.
4. Peace of mind
No one can predict the future. We all know we are going to die one day, but cannot say when, where or how. The least we can do is secure our family financially if any tragedy strikes.
5. Tax savings
Last but not the least; life insurance premiums are exempt from income tax under section 80C. That’s an added benefit we all love, don’t we?
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