Importance of life insurance policy

  • Life insurance is a contract with the insurance company wherein the policyholder . You need to pays premiums at regular intervals then and in return, the insurance company will pays you a some lump sum amount on the policy holder’s death. This money is given to the beneficiaries of the policyholder which includes spouse, children and, parents.

    The policy holder can choose the a life insurance policies plan depending on his or her family’s needs and financial goals. The term insurance provides cover for a set of specific time period of time while some life plans provide protection for the whole life. Death benefits from any insurance policy are tax fee hence, nothing is deducted from the amount. As adversity can struck anytime you need to be prepared  financially for the family in times of contingencies. By availing for  a  life plan you get the benefit of financial security and protection.

    Now a question that would pop up is why it is necessary to buy a life insurance plan ?

    Here are a few reasons why you should avail a life insurance policies as early as possible.

    • Life plans provide you high risk cover that can keep your family financially secure and firm even in your absence.

     

    • By investing in life insurance policy you secure your family’s future. Life insurance also acts as a financial supports during retirement, the people who are getting old, the people who have met with unforseen accidents, sudden death and critical illness.  are bedridden, even retired people will get benefits out of the life plans. There are numerous life insurance policies available in the market and you can choose a plan as per your requirement.

     

    • Life insurance plans get better outcome than the alternative options. The life plans offer bonuses which no other plans can offer. The money invested in life insurance plans is safe and covers all the risks. The money invested will fetch good returns and will be paid back to the beneficiaries  after the completion of the term or after the death of the policy holder.

     

    • Under the section 80 Cc act of the Iincome Ttax Act of India you can avail tax benefit of up to 1.5 Llakh on life insurance plans

     

    • Under this act the insurance premiums that you pay are subject full rebate.

     

    • Life insurance policies gives you the advantage of taking a loan in case if you are in dire need of moneyagainst the policy. The loan amount will however depend on the policy provisions.

     

    • Life insurance helps you at a stage where you can plan your financial and long term goals accordingly. It not only provides financial support to the deceased’s family but also act as a long term investment. You can easily achieve your goals with the risk appetite you are willing to take.

     

    • The life insurance policies keeps a family stays financially secured due to the by providing an assured income the family gets on at regular intervals. This income aids ins for paying up all the rents, loans and manage the other day-to-day expenses. This assured income compensates for the income that ceases after the death of the earning member of the family..