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Why Life Insurance Is A Must for Long-Term Financial Security

Jun 06, 2018 | 2 years ago | Read Time: 2 minutes | By iKnowledge Team

Financial security has become the Elusive Nirvana these days, given our lives are mostly stuck on overdrive. You have to firefight work stress, job security and the din of daily work to build a platform for your family — a platform that needs to be durable enough to withstand the strain.

But all the good work can bite the dust because our lives can turn on its head at the flick of a switch. Your family, for whom you worked hard all your life, may be left in the lurch in case you pass away suddenly. This is the main reason why people opt to get a life insurance cover. A life cover ensures that your family is blanketed from the uncertainties of life. It ensures you and your family are financially secure in the long run, no matter what the future holds for you. So, let’s take a detailed look as to how life insurance policies can help you achieve, at least, a little bit of that Elusive Nirvana:

1. It can replace your dependent’s income

A life insurance policy can make sure your spouse is able to replace the lost income in case of an untimely demise. That’s because the insurer promises to pay your family a pre-determined amount of money in the case of an unexpected death.

2. It can cover your children’s expenses

Keeping your children’s future secure is probably one of your biggest priorities. A life insurance policy can ensure that their future remains secure even if you are not around. It can pay for their monthly upkeep, education and even finance their wedding later in life.

3. It can help you meet long-term goals

Life insurance policies are not one-dimensional. They can help your money grow over time as well. Unit-linked insurance policies and term plans with return of premiums (TROPs) are specifically designed to help you meet these goals. While a part of the ULIP premium is invested in a market-linked scheme, TROPs ensure you get back the predetermined amount along with the total premium amount in case you survive the policy.

4. It can help take care of pending debts

The sum assured your family gets in case of untimely death can help them pay any outstanding debt like home loan, personal loan, credit card debt, among others. Therefore, a life cover can be a real saviour for your family in case you aren’t around. It will ensure your family remains financially stable and be free of debt-related worries.

5. It can help you save tax

This is another advantage of taking a life insurance policy. Taking a life cover gives a tax benefit of up to Rs 1.5 lakh, thanks to Section 80C of the Income Tax Act. You can also avail tax-free proceeds under Section 10 (D) of the Income Tax Act, 1961.

6. It can empower you against other uncertainties

You can add riders to your policy for added protection. For instance, an accelerated death benefit rider entitles you to death benefits in case of a terminal illness.

To sum up, a life insurance policy can relieve you from the relentless pursuit of financial security and thus, help you have an effective financial plan. It not only insulates your family from the vagaries of life, it can also help you reach your long-term financial targets. All in all, it can be the perfect answer to long-term financial security.

Advt. no.: IA/MAY 2018/4015


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

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Life Insurance Plan with 4 Options to Choose from

  • Life Plan
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  • Life & Health Plan (10 Critical Illnesses covered)
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