Death is something that people generally don’t like to think about, especially when they are young and healthy. But one thing that we should realize is the fact that nobody is immune to death. It is essential to have a practical approach towards life and take adequate measures to safeguard the financial life of your loved ones in case of your unfortunate demise.
One of the most effective ways to provide this safety net to your family is purchasing life insurance. Here are 4 reasons that make life insurance an absolute must for everyone-
- Financial Security for Family
On the policyholder’s demise, the policy beneficiary receives the death benefit from the insurer. This death benefit could play an essential role in providing financial stability to the family members. It can help them enjoy the lifestyle that they are used to and work towards achieving their objectives.
While it can take several years for the family members to overcome the emotional turmoil, the death benefit from the life insurance policy could at least take care of the financial needs of your loved ones and help them live independently and confidently.
- Dealing with Loans
You’d never want to leave your loved ones with your liabilities. But in case of your unfortunate demise, while repaying a loan, your family members would be required to clear off the liability. In the case of home loans, the lender would also have the legal right to sell your home if the loan is not paid off entirely.
The death benefit received by your family after your demise can be used for dealing with such liabilities. Be it a home loan, car loan, or personal loan, the life insurance policy will ensure that the loan can be repaid fully or at least to a significant extent.
- Achieve Financial Goals
Modern life insurance plans offer a lot more than just life coverage. Plans like ULIPs and endowment insurance are also an excellent way to invest and secure your life. A portion of the premiums paid towards the policy is invested to generate returns.
On maturity, you can withdraw your money and use it to purchase a home, for child’s education or marriage, or live the retirement of your dreams. In case of your demise within the policy tenure, the beneficiary will receive the death benefit.
- Tax Benefits
While tax benefit should never be the sole reason to invest in a life insurance policy, it is definitely a great advantage. Under Section 80C of the IT Act, policyholders can claim a tax deduction of up to Rs. 1.5 lakhs on the premiums paid towards a life insurance plan in a financial year.
Some of the life insurance policies also come with a built-in health cover or the option to purchase health-related riders. The health cover and riders are eligible for deduction under Section 80D.
Experience Utmost Peace of Mind with Life Insurance
By purchasing life insurance, you will take a significant step towards living a more confident and secure life. The peace of mind that comes with knowing that the financial future of your loved ones is protected is like no other.
Now that you know some of the top reasons to invest in a life insurance plan, look for a reputed insurer to browse through the options and purchase a feature-packed policy at the earliest.
