Do you have a family who depends on you in any way?
Are you the primary bread-earner in your family?
Do you want your family to be financially secure even after you pass away?
If the answer to any or all of the above questions is a yes, then you definitely need life insurance. Unfortunately, though, many believe in the myth that paying for a life insurance premium is a waste of money. The basic truth, though, is that your family needs you to buy a life insurance cover.
Here are the main benefits of life insurance
- Protection: Do you have any loans in your name, like a home or car loan? Remember, in case of your death, it is your family that will have to pay off this debt. In case they fail to do so, the financial institution involved can forcefully take possession of your house or car. A life insurance policy can ensure that nothing like this happens. It thus helps you protect your assets.
- Savings: There are different types of life insurance policies [SN1] available today. Some of these can even help you save for life as a retired individual. These insurance plans, like Money-Back or Endowment, can help you save for the future. They promise an assured sum after a certain period of time or your retirement[SN2] , which can be a huge help at a later date.
- Wealth-creation: Who doesn’t like a little extra money? Insurance can even help you increase your wealth. Insurance policies like Unit-Linked Insurance Plans (ULIPs) [SN3] earn you a return by investing a portion of your premium payments in capital markets. These insurance plans, thus, have a dual benefit—protection and investment.
- Tax-savings: Whatever amount you pay as premium – be it a life or a health insurance plan, can lower your total taxable income. Under sections 80C and 80D of the Income Tax Act, you can avail tax exemption [SN4] on your insurance payments. This helps you save even more money!
Life is precious and it’s important to get as much protection as possible. Instead of thinking of the cost of premium, think about it as an investment in the future—yours and your family’s!