Life insurance is a financial instrument that can help your family reduce their financial burden in case you are no longer there. It empowers them to not only continue their current lifestyle but also attain the goals and milestones you planned together.
Here are the top 3 reasons why you should consider availing Life Insurance:
Financial Cover for Your Loved Ones
Your dependents (nominee) will receive a lump sum or monthly income in case of your demise during the policy period. While nothing can relieve the emotional loss, financial security can enable your family to mitigate the liabilities and continue the comfortable life that you provided for them.
In case you do not have dependents or liabilities, you can still consider availing life insurance wherein the sum assured can be assigned to a charitable trust or a NGO.
It is very important to decide the suitable insurance cover based on your current standard of living, liabilities, and future requirements. A term insurance plan is the simplest form of insurance you can consider to get a large cover at a small premium.
Apart from term plans, most insurance policies double up as systematic savings & protection plans. Based on your specific needs and goals, you can choose from among the various protection, wealth creation and long-term retirement plans available.
Some insurance policies offer flexible market-linked growth plans where you can choose the nature of the fund in which you money would be invested. From highly aggressive to extremely conservative, you can choose a fund that meets your financial risk appetite.
Tax Savings - An Added Benefit
While this should not be the only reason to buy a life insurance policy, remember that you can also save tax with life insurance. Life insurance premiums (up to Rs. 150,000 per annum) are tax exempt under the Section 80C of the Income Tax Act, 1961. In addition, Section 10 (10D) offers total exemption of claim amount or bonus.
Apart from the obvious financial benefits, life insurance should also be considered for the peace of mind it brings to you. With life insurance, you are rest assured that your loved ones will always be taken care of. Get financial cover of Rs. 1 Crore with a 30 year term for just Rs. 576/month*.
*For a 28 year old non-smoking male. Exclusive of all taxes and cess as applicable
You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note that all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax laws.