10 Reasons to buy life insurance

  1. To Secure your family future : In today’s world, life is too unpredictable. Every profession has some amount of risk. life insurance provides financial stability in case of unfortunate demise. It would be more worst, if you are sole breadwinner of your family. Nowadays, standard of living is too high, even cost of education is too high, a person must have term insurance with higher sum assured. Premium rates are dependent on age, so it is a best decision to buy term plan as early as possible. Premium amount in term plan is also cheaper compared to other insurance plans.
  2. For your Child Education : All of us are aware about cost of education. There might be a need where amount required for your child education is too high and you don’t have any back-up. At this point of time, policies which you have bought for your child comes in picture. Most of the people do not plan for such things, then education loan is the only option in front of them, which create additional pressure to those child.
  3. For your Retirement : We all require capital during our youth as well as old days, but when we are old we have less energy and potential compare to young days. so,It’s always great to plan from your young days so that surplus fund gets accumulated till old age. There are pension plans in insurance in which life assured gets money like his normal pay after his retirement.A person is not dependent on anyone when he buys such plans. Overall, the key takeaway is to start investing as early as possible so that enough fund is created and you can maintain stable standard of living and good life-style.
  4. Capital for key stages : There are various key stages in life for each and every person. Buying a new car, buying a new house or getting married. Such key stages require capital for fulfillment of our needs. For such fulfillment’s, money-back policies also called as endowment plans are required. In money-back policies, a life assured gets percentage of sum assured at regular intervals i.e in between policy years whereas in other plans he gets final amount at end of term.
  5. Create wealth through investment : investment is very important for financial planning which help us to create wealth. For insurance as well as investment, a life assured should buy ULIP plans. these are unit linked plans in which part of life assured premium goes to certain fund which gets invested and part of premium goes to provide life insurance cover. Top-up and partial withdrawals are also available in ulip plans. Based on life assured requirements, he can withdrawal some amount of his fund, this functionality is called partial withdrawal which is available after 5 years from issuance.
  6. Can opt Loan against policy : Due to lack of capital, a person delays fulfilling various requirement of his life. To accomplish certain desire, a life assured has option to take a loan. A policyholder can get loan against his life insurance policy provided he has paid premium for minimum 3 years and policy is in in-force status. Loan amount is 80-85 percent of surrender value. Interest on insurance policy is less compared to personal loans.
  7. Tax Benefit on policy : There are various ways through which a person can save tax. one such way is buying a life insurance policy. A person who buys life insurance policy gets tax benefit based on his premium. As per Section 80C ,Premium paid by life assured up to 1,50,000 is eligible for tax deduction.
  8. Riders : Riders are additional benefit on policy in which a life assured has to pay additional premium provided that rider is not an in-built rider. Riders like Accidental death benefit in which a life assured receives benefit when he dies through accident. Disability rider in which a life assured receives benefit when he is disabled. There are certain other riders like waiver of premium, critical illness and income benefit rider.
  9. Boost our confidence : There are two key things which always increases our confidence. This two things are : Saving and Investment. We get a positive vibes when we are genuine in our investment . Saving and investments are the most important factor of life which increases decision making ability of a person.
  10. Peace of mind : We all need positive mind, which comes through peace. When a person buys life insurance policy, he secures his family future which leads to positivity. When a person saves according to his needs, he gets cheerful day by day, which also helps him to grow in other aspects of his life. Overall, buying a life insurance policy is an important step in one’s life which will lead towards growth.

Disclaimer :

This article is not sponsored and not meant for endorsing any particular insurance company. Please Check Terms and Condition of respective organization along with inclusion and exclusion before buying insurance policy.

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