We always find ourselves striving hard to give our family the best of all things. We invest to realize the dreams of our loved ones. However, deep down, the feeling of uncertainty regarding the financial future of the family always lurks.
It's difficult to imagine how your family will manage in your absence. Your family may find it difficult to sustain the same kind of lifestyle. To quell this ever lingering fear, a variety of insurance companies in India, such as MaxLife, offer life insurance plans. These plans offer income replacement to your family when you are not around, thereby helping them meet their basic financial needs. These life insurance plans are available at an affordable price and are the best protection that you can provide to your loved ones.
Of course, there isn't any legal mandate to buy a life insurance plan in India; however, when you see the benefits experienced by a number of people around you who availed these plans, your opinions about life insurance plans are likely to alter. Though these policies are designed to protect the income of families in the absence of a breadwinner, you can avail a host of other benefits that make them a worthy buy.
Listed below are a few reasons why Life Insurance is a smart investment.
Replacement of Income
This is the basic benefit offered by any life insurance plan. By purchasing a simple term plan, you can secure the financial future of your family. In the unfortunate event of your death the insurance company will pay the sum assured amount to your family, thereby not denying them of their basic financial needs. Similarly, for people who are about to retire, the retirement plans offer income replacement in the form of annuity pay-outs during the post-retirement age.
There are several life insurance plans such as whole life plans, pension plans, guaranteed income plans, and growth plans that offer growth of the invested premium amount. These plans not only promise maturity benefit but also offer comprehensive protection in the form of life cover such that the financial future of your family will be secured. Plans such as whole life plans provide guaranteed income protection to the insured up to the age of 100. Similarly, growth plans assure guaranteed returns to realize your future goals such as buying a car or home.
Life insurance plans can act as the perfect shield to take care of your long-term loans and dues when you are not around anymore. By opting for the right amount of the sum assured, your loved ones would not have to bear the burden of loan repayments when you are not around. The received sum assured would be adequate to pay off the pending debts. Similarly, life insurance plans can also be held as collateral to avail long-term loans such as home loans.
The burden of Income Tax payment bothers every salaried person. Under the Section 80C of the Income Tax Act, deduction up to 10% of the sum assured amount of life insurance plans will qualify for income tax benefit. Similarly, under the Section 80 D of the Income Tax Act, deduction up to Rs. 15,000 towards premium payment is considered eligible for tax benefits.