Life insurance is not a luxury that you can have, but is rather a "must-have."

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.

Find more about Aditya Birla Capital Life Insurance.

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* Terms & conditions apply.  The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.