This article lists out seven reasons why it is important for everyone to have life insurance.Life insurance is like exercising. We all know that it’s good for us, yet we keep on postponing it. If getting life insurance cover is on your “to-do-list” for a long time, but you haven’t gotten around to it yet, here are a few compelling reasons to do it as soon as possible.

1. To Replace a Primary Income

Nothing can be worse than losing a family member, especially the breadwinner. The financial issues that follow can further add to the loss. If an unexpected tragedy strikes your family, the compensation from the life insurance policy can help meet your financial requirements.

2. To Cover Children’s Expenses

Life insurance policies don’t just provide life cover, but also additional benefits at crucial stages of life like paying for a child’s higher education fees, planning the dream wedding of your daughter and so on. For instance, if your child has taken an education loan, you can use the benefits from your life insurance policy to wipe off the outstanding debts, helping your children lead a financially-independent life, free from the burdens of education loans.

3. To Build Wealth

When evaluating investment products for building personal wealth, a life insurance policy is not the first product that comes to mind. However, life insurance policies like ULIPs (Unit linked investment plans) not just offer life coverage, but also double as investment instruments, helping you build your corpus while you are alive.

4. For Retirement

Retirement plans continue to provide you with a monthly income post-retirement, helping you enjoy the golden years of life, without worrying about finances.

5. For Protection against Critical Illnesses

Certain life insurance policies provide you with compensation if the insured person undergoes medical treatment for critical illnesses. Furthermore, the future premiums are also waived.

6. For Tax Benefits

According to Section 80C of the ITA, you can enjoy tax deductions up to 1,50,000 INR on the premiums you pay for your life insurance policy. Additionally, the maturity benefits you receive from the policy are also tax exempted.

8. To Pay Off Debts

You can protect your loans like home loans with a life insurance policy. In such cases, it helps you to ease the burden on your family members if something were to happen to you unexpectedly before loan completion. The policy amount takes care of loan repayment, freeing your spouse and children from your loan obligations.
Buying life insurance is one of the most crucial financial decisions of life. Plan well and choose the right policy that works for you and your family.


Learn more about different Online Term Insurance Plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.




Trending Articles

Article Links

Endowment Policy

Money Back Policy

Pradhan Mantri Jeevan Jyoti Bima Yojana

Term Life Insurance

Unit Linked Insurance Plan (ULIP)

Latest Articles

life-insurance
life-insurance

Everything You Should Know About Variable Life Insurance

Read More
Posted on 24 March 2020
life-insurance
life-insurance

Investing in Money Back Endowment Plans

Read More
Posted on 19 March 2020
life-insurance
life-insurance

Money-Back Policy vs Endowment Policy

Read More
Posted on 19 March 2020

Featured Articles

image abc-of-personal-money
abc-of-personal-money

Are Millennials Any Different When It Comes To Planning Financials?

Read More
Posted on 05 February 2020

Relevant Articles

image health-insurance
health-insurance

Best Mediclaim Policy for Parents in India

Read More
Posted on 27 March 2020
image health-insurance
health-insurance

Comparison of Health Insurance Plans in India

Read More
Posted on 27 March 2020
image motor-insurance
motor-insurance

What are Some Common Myths About Two-Wheeler Insurance?

Read More
Posted on 24 March 2020