Generally, most young lads think that life insurance is not their cup of tea; it is for oldies. But that’s a myth! If you too thought the same way, it’s time you thought again! Investing in life insurance policy is one of the most significant financial decisions, no matter what your age or your marital status is.
But here’s the BIG QUESTION?
Why is it so important?
Regardless of your earnings, it’s difficult to know what your future holds for you. Remember, life is full of uncertainties. So, investing in one of the most rewarding life insurance policy is the best way to secure your family’s financial future and ensure an iron-clad protection for your loved ones, even when you aren’t around. Besides, there are many add-on benefits that life insurance policies provide.
- Financially Secures Your Loved Ones’ Future-
While zeroing in on a life plan, this is the first and the foremost factor that buyers need to carefully consider. A good life insurance policy is all about meeting responsibilities and keeping promises, even when you are not around. Whether, it is about providing financial security to your spouse, paying for your child’s education or replacing your lost income, a life insurance covers it all and much more.
Apart from this after retirement when your income stops and expenses related to health increase, you can ensure the financial security of your loved ones through your life insurance payouts. In addition, these insurance payouts help support your loved ones in the event of your untimely demise. There are several life insurance plans that pay twice the benefit, in the event of accidental death of the life assured.
- Handles Unpaid Liabilities-
Nobody wants his/her family to get entangled in financial difficulties and debt and face a situation of financial crisis, especially when they aren’t around. If you are careful enough to do your homework and take the pain to invest in the right insurance plan beforehand, then you can rest assured of making a sizeable saving for all your unpaid liabilities such as home loans, personal loans, auto loans or a credit card loans. Such insurance payouts can occur in case of policy maturity or as part of pre-determined periodic benefits as in case of money back or endowment policies.
- Insurance Policy is Cheaper for Youngsters-
Purchasing a life insurance policy when you are still young can help you save a lot of money. When life insurance companies consider policy applications, they focus mainly on the risk involving claims made by applicants in the near future. The ultimate risk for any insurance company remains death of the insured. Buying an insurance cover at a young age will cost you much less as compared to when you are too old because death risk at younger age is lower.
With life insurance policies in hand, you can ensure financial support and protection for your parents or siblings with special needs as a single person. The earlier you choose to get insured, the better will be your coverage and the lower will be your insurance premium. Typically, younger people are less likely to develop life threatening conditions as compared to older people.
- Helps Realize Long-Term Goal Easily–
Most life insurance plans work as an investment instrument helping people invest for a long term and attain long term goals like buying a home, getting married, funding higher education of children, or planning post retirement life.
Moreover, most life insurance companies in India provide you with diverse investment options that come along with incompatible plan choices. Some policies provide certain investment products that pay returns on your investments based on their market performance. However, it makes sense to remain careful about the returns and potential risks, before opting to spend on investment linked policies.
Besides, you can save a chunk of your income with insurance policies, regardless of what plan you decide to opt for. The premium paid by you as an insured is eligible for maximum tax benefit. Similarly, the maturity and death benefit also comes under tax-free proceeds, under the different sections of the Income Tax Act.
- Provides a Peace of Mind–
Life Insurance Policies are meant to help you during the difficult phases of your life. These policies help you stay prepared to face the uncertainties of life, without having to compromise on your desires. Remember, unfortunate and unforeseen events such as death or family tragedies are unavoidable. So, it is imperative to buy an insurance policy early in your life so that you and your loved ones are ready to combat even the most difficult phases of life. Along with the basic coverage provided by the life insurance plans, there is a host of additional benefits that’s offered to the insurance holder as accidental death benefit rider and critical illness rider.
With a life insurance plan in hand; your family will remain financially secured and protected, even if you are not around them. Moreover, as the breadwinner of the family, you can ensure a peace of mind for your family by securing their future through life insurance policy.
Based on financial obligations and dependencies, a life insurance is a great tool for both protecting and helping consumers to save in a disciplined manner. If we put it in a simple way then, life insurance is the best tool to safeguard your family against changing circumstances and provide for their growing needs, from time to time.