Life insurance policy refers to the contract between the insurer and an individual. According to the agreement, policyholders pay a certain amount as a premium to the policy. The insurer pays a certain amount to their family in the event of the insured person’s untimely demise.
Since death is the only sure thing in life, you must buy the best life insurance policy that suits your financial needs.
Why Choose Life Insurance Plans?
A life insurance policy helps protect your family’s financial interests when you are not around. Millions of people buy life insurance for reasons that are often difficult to explain. It is a key component of a sound financial plan due to the following benefits:
1. Financial Protection of the Family
The life insurance policy will provide a certain amount to your family (the chosen nominee) at the time of your untimely demise They can use the sum assured amount to meet various financial needs.
2. Benefits of Critical Illness
You can choose a critical illness rider with a life insurance policy that offers protection against serious illnesses such as cancer, kidney failure, and cardiovascular disease. This way, you or your family do not have to worry about emergency medical care’s financial side.
3. Tax Deductions
The premium you pay for a life insurance policy is eligible for tax credits of up to 1.5 lakh under section 80C of the 1961 Income Tax Act.
4. Peace of Mind
Having the best insurance policy by your side, gives you peace of mind knowing that there is a financial safety net that your loved ones can trust after you.
5. Wide Coverage at low Cost
Insurance companies offer significant life insurance benefits (like term plan) at a low cost, depending on your age and health.
6. Opportunities for Wealth Creation
Life insurance plans such as ULIP (Unit Linked Insurance Plan) give you the advantage of life insurance along with the market return on your investment.
7. Financial Planning for Life
In addition to financial support against untimely demise, life insurance plans work as long-term investments to achieve various life goals. By investing in life insurance at the right age, you can plan well the different life stages.
8. Planning for your Child’s Higher Education
Saving money on your child’s education can be one of your top priorities as an Indian parent. By investing in the best life insurance policies, you can plan for your child’s future and help them secure the different stages of learning in life.
9. Secured Income at Retirement.
Life insurance is the financial instrument that you can opt for for your retirement plan. The recurring payments it has to offer in the form of an annuity can be a source of income for your retirement life.