Why do we need life Insurance.
List
of 10 compelling reasons for buying a life insurance policy.
LOOKING AFTER YOUR LOVED ONES EVEN AFTER YOU'RE
GONE- Your family is dependent on you even after
you're gone and you certainly don't want to let them down.
DEALING WITH DEBT- You don't want your family to deal with financial liabilities
during a crisis.
HELPS ACHIEVE LONG-TERM GOALS- Since it is an instrument that keeps you
invested for the long term, it would help you achieve your long-term goals such
as buying a home or planning your retirement.
LIFE INSURANCE SUPPLEMENTS YOUR RETIREMENT GOALS- Who wouldn't like their retirement
savings to last until they do? With a life insurance plan, you can ensure you
have a regular stream of income every month.
BUYING INSURANCE IS CHEAPER WHEN YOU'RE YOUNGER- The earlier the better. For instance,
single people provide financial support for ageing parents or a sibling with
special needs. Insurability is another reason to consider life insurance when
you're single. If you're young, healthy and have a good family health history,
your insurability is at its peak, and you can get the best rates on your life
insurance policy.
YOUR BUSINESS IS ALSO TAKEN CARE OF- Life insurance isn't only for yourself
and your family. Some insurance policies also take care of your business. If
you own a business, then your business partner can purchase your portion of the
business without hassle.
TAX-SAVING PURPOSES- You could save taxes with insurance policies irrespective
of what plan you buy. The premium you pay on an insurance policy is eligible
for a maximum tax benefit of Rs 1.5 lakh under Section 80C, and for tax-free
proceeds on death/maturity under Section 10 (D) of the Income Tax Act, 1961.
A TOOL FOR FORCED SAVINGS- If you choose a traditional or unit-liked policy, you pay a premium each month, which is higher than what it costs to insure you. This bit of extra money is invested and it accrues cash value. This cash can then be borrowed against the policy or you can choose to sell it or draw income from it.
YOU MAY NOT BE QUALIFIED FOR IT LATER- Life insurance policies run on
uncertainties. You may be healthy now and paying a premium for life insurance
may seem to be an added financial burden, but if you suddenly fall ill, you may
not be allowed to but a life insurance policy. Therefore, it is imperative to
buy one early on in your life because it remains in force if your health
deteriorates later on. Insurance companies allow you to attach certain riders
or benefits to your existing or new policy. These riders enhance the quality of
your insurance. The accelerated death benefit rider, for instance, allows the
policy owner to avail all or a part of the policy's death benefit if he or she
has less time to live due to a critical illness, or wants to use the money for
medical treatment or related expenses.
PEACE OF MIND-
Death is unavoidable. In the face of tragedy, the least you can do for your
family is to secure their financial future. Even if it is a small policy, you
know that you've done all you can to help them tide over difficult times.
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