People usually tend to find the best suitable plan for Insurance policies in India. But still, the scene is, many people are not aware of the importance of life insurance and its advantages. Today, life insurance provides not only the life cover but also the provision for savings and investment. This article states five reasons why you should buy life insurance policies in India. Read further to know more.
Financial Security to Your Loved Ones
The most important thing and the primary aim of choosing the life insurance policy is to provide adequate financial security to the family and loved ones. Sometimes, there is only one breadwinner in the family, and in case of any uncertainty, the family suffers from a significant financial crisis. The lifestyle they were living till now, gets compromised. Would you ever like your family to be suffering from financial catastrophe? Certainly not! Thus, purchasing the life insurance policy provides coverage against all the possible financial emergencies.
Supportive of Long-Term Goals
Many life insurance policies in India offer savings and investment options, such as endowment plans and ULIPs. However, except term insurance, all the policies provide maturity benefits. Thus, at the end of the tenure, you get sufficient amount in your hand which can be utilised to achieve mid-term and long-term goals. Sometimes, insurance companies may announce dividends based on the market performances which is an added advantage.
Settling an Outstanding Amount/Loan
We need money to some extent, and to fulfil the wishes, sometimes we choose to take a loan. Now, a breadwinner never wants his family to be suffered from the financial liabilities. By misfortune, if any uncertain event occurs, the corpus gained through the investments or the death benefits of the policy are useful in settling the debts.
Buying Early is Always Beneficial
Building an emergency fund can be a provision for an emergency, but life is full of uncertain events and doesn’t offer anything with prior notifications. Now, if you don’t have any life insurance policy and get an emergency at the later stages of your age, you will find it much tough to settle all the things. Therefore, it is always better anticipating the future financial emergencies, choosing the right life insurance policy at the early stages is always helpful. Also, the premium rates are also lower than what you buy later.
Several Benefits Can be Availed
Life insurance policies in India provide several benefits that support several causes concerning your financial planning. Tax benefits are the most common among all the insurance products. In life insurance, you are entitled to avail tax benefits under Section 80C and 10(10D) of Income Tax Act. Besides, several other benefits such as additional bonuses, flexibility, riders, and many other things can be availed.
Lastly, there are many more reasons to buy life insurance policies in India such as corpus for retirement goals, business needs, systematic way of savings, and mainly peace of mind. All these things together help you a lot when you opt for a right life insurance plan.