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Why Do You Need A Life Insurance?

Jul 13, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

Life Insurance

Life often brings uncertain situations to the forefront and there is no way to predict the possibilities of tomorrow. Buying a life Insurance plan is among the most important financial decisions that you will ever take. Life insurance provides a lifelong option of money planning and offers financial security in long terms. Many plans are available in the market and as per your capacity and requirements, you can choose a premium for your life insurance. Here are the reasons that prove why life insurance is necessary:

  1. To help your family meet their goals: Sometimes family members are forced to compromise almost everything if they lose the family head to an unfortunate circumstance. Everyone deserves assured food, education, health, and a good home but without a proper income these requirements become a struggle. If you are prepared for such unfortunate events in advance, you can save your family from financial worries and ensure they are secured in your absence. The sum assured provided by the insurance company can help your family maintain their financial stability.
  2. To help you achieve long term goals: Insurance policies like ULIPs and saving plans can be great tools for wealth accumulation. In a Savings plan, the premium you pay for the insurance gets deposited with the companies and is returned at the time of maturity. The amount obtained after maturity can be allocated for multiple purposes as desired by the policyholder. Moreover, some companies offer loyalty bonus to policyholders, which can increase the investment amount. ULIP plans on the other hand, provide additional monetary benefits through stock market investments. A part of the premium paid for insurance, is allocated towards investments. This gives the policyholder the dual benefit of returns and investment simultaneously.
  3. To help in debt repayment: In your absence, the burden of debts like car loan, home loan, and personal loan is likely to fall on your spouse or family members. Even if they earn good money, managing house expenses along with additional debts can be an arduous task. With the insurance claim amount, your debts can be paid easily without causing financial strain to your family.
  4. To take care of your business: If you own a business, you must be aware that it needs constant funding to function properly. In your absence, the company may function well based on surplus fund in your name but after it gets over; situations may turn bad to worse. To handle such situations, the sum assured gained from a life insurance policy can be allocated towards your business’ funding.
  5. To help during your retirement: You are never fully prepared for any mishaps but a little planning can help your family live a fulfilling life. When you retire, a life insurance policy can be helpful in effective planning for you and your family’s financial needs. Aegon Life iTerm plan secures your family for the cover amount you choose against a monthly or annual premium.
  6. Tax saving instrument: Investing in insurance policies can also help you to save money on taxes. Under the Section 80C, premium paid for insurance policies is eligible for a maximum tax benefit of Rs 1.5 lakh. Whereas section 10 (D) of the Income Tax Act 1961 allows tax exemptions for proceeds on death or maturity.
  7. Loan against insurance: If you are in dire need of funds, you can apply for a loan against your life insurance plan. Banks and NBFCs offer loans on policies that have surrender value in the market at suitable interest rates. However, for an insurance policy to have a surrender value, you have to pay premiums for a few years. Once you apply for the loan, the policy will be transferred to the lender. Before, applying for a loan, it is important to know that health insurance plans and motor insurance are not eligible for loans.

Life insurance ensures peace of mind for yourself and offers absolute security for your loved ones when you are not around. It is the best purchase that you can make to assure your family a means of cost effective protection. To help you determine the protection you require, you can take the help of the human life value calculator available on Aegon Life’s website.

To know about Aegon Life’s life insurance products like term insurance and other products, visit our home page.

Advt. No.: IA/Jul 2018/4171


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
Different Term Insurance Plans And Premiums That Follow
ULIP Plans – A Smart Way To Manage Your Wealth
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