Five Reasons Why Life Insurance is Important For All

Life insurance is ai vital protection coverage fori your loved ones ini the event of youri untimely death. But aparti from providing financial assistance,i there are many otheri reasons why a lifei insurance policy is important.i Read on to knowi the six reasons whyi it is paramount fori all to invest ini a life insurance policy.

Buyingi a life insurance policyi s one of thei crucial financial decisions youi may take in youri lifetime. Research suggests thati only about 10% ofi the Indians have ai life cover. If youi are wondering why lifei insurance is important? Thei answer is because thei future is unpredictable. Noi matter what your currenti financial status is andi how much you earn,i it is impossible toi predict when a casualtyi can strike.

Over the pasti few years, the numberi of people dying ati a young age hasi increased significantly. If youi are the sole earningi member of your familyi and if something werei to happen to you,i a life insurance policyi will help you securei the future of youri loved ones and helpi them meet their financiali expenses like debts, payingi off the loan andi maintain a decent standardi of living.

If you havei underestimated the importance ofi life insurance, it wouldi be wise to makei sure that you buyi a robust life coveri for your family andi secure their financial future.i Let us look ati the importance of lifei insurance.

Meet your family’s needs

Onei of the most importanti life insurance benefits isi that it helps youi secure your family’s financiali needs, even when youi are not around. Ifi you have a wifei and children or parentsi who are dependent oni you, it can bei difficult for them toi be able to sustaini and take care ofi their expenses in thei event of your demise.i This is where lifei insurance plays an importanti role; the death benefitsi can help them takei care of their regulari expenses like child education,i pay off a Homei Loan, etc. and havei the financial stability withouti having to compromise oni their lifestyle.

Protect Your Business

Ai lot of people havei no idea about whati does life insurance cover?i Apart, from covering youri family, there are somei life insurance policies thati provide coverage to youri business. If you arei a business owner, andi in case if somethingi happens to you, youri business partner can purchasei a certain portion ofi your business, and thei pay-out will be paidi to the nominee. However,i you must know thati in this arrangement, thei nominee will not geti any stake in thei business.

Settle The Debts

During youri active working life, youi may avail of ai loan to purchase ai home, a car, fundi your child’s education, ori even to repay debts.i However, in case youi pass away before payingi off the loan, thei debt will directly falli onto your family members.i Even if the dependentsi are employed, managing thei loan can be difficulti for them. This isi why life insurance isi required if you havei a life insurance cover;i the family can payi off the debt withi the sum assured andi live a financially independenti life.

Support Your Retirement Plan

Iti is the innate desirei for all to havei a good retirement fund.i You can accomplish thisi goal by investing ini good life insurance plans.i There are some lifei insurance policies that providei regular income on ai monthly basis.

Get Tax Benefits

Aparti from protection, one ofi the most significant advantagesi of life insurance isi that it helps youi get tax benefits. Noi matter what type ofi life insurance policy youi buy, you can savei taxes. Under Section 80Ci of the Income Taxi Act, the premium paidi for life insurance isi eligible for deduction upi to a maximum amounti of Rs 1.5 lakh.i Also, the death benefiti or maturity is exemptedi from tax under Sectioni 10(10D).