Would it be fair for you or your family to combat both emotional and financial losses at the same time? The obvious answer is a big ‘No’! To reduce these losses’ negative impact, buying life insurance policies must be on your to-do list. You cannot overlook the benefits of a life insurance policy during your lifetime.
You also get diverse investment options that come along with different life insurance policies. Some compelling reasons for buying life insurance policies to meet both your emotional and financial goals are:
Financial Security
This is the most critical aspect of life insurance that one needs to factor in. You can’t let your family down when life events turn sour. Whether it is replacing the lost income, securing your child’s future, education, and marriage, or making sure your spouse gets the much needed regular income, life insurance plans can be the anchor during stressful situations.
Further, any outstanding debts, such as home loan, auto loan, personal loan, or credit card bills will be taken care of in your absence, if you have bought a life insurance plan.
With a life insurance policy in your portfolio, you get that peace of mind as you know your family would not be alone if a financial crisis strikes. It is a great mental comfort that comes with the security of a life insurance plan.
Lifestyle Maintenance
Life insurance is financial support that allows your family to maintain the lifestyle you chose for them. Your family does not have to undergo any drastic alterations after an unwanted life incident thanks to the life insurance policy. Though emotional loss can’t be curtailed; life insurance policies ease the financial loss.
A steady flow of income post-retirement
To lead a worry-free retirement life, it is necessary to start your planning today. Planning should be done in such a way that you can easily meet your medical and living expenses.
With a life insurance policy, you can ensure you have a regular stream of income every month even after your retirement. There are many plans available that can give you a lump-sum amount besides regular income options.
Making a child’s future fool-proof
Missing a financial goal is not such a terrible thing unless it has a deadline that can’t be deferred. You can postpone your holiday plans if your savings are enough, but adjournment is not an option when it comes to your child’s education.
Child education fees are skyrocketing nowadays! No university will wait if you can’t provide for the fees due to insufficient investments. Life insurance plans are designed to take care of your child’s future. There are various life insurance plans which not only help you accumulate enough money for your child’s higher education needs but also ensure that your absence does not hamper your kid’s future.
Plan for life’s milestones
Significant milestones like getting married, having children, or buying a house are expensive; waiting till the last minute, when such events are about to happen is not a logical thing to do. It can affect your ability to put away money towards meeting other goals, like retirement.
If you think any of these or any other large expenses are part of your future, you should start saving for them right away. If you are young, healthy, and have a good family history, your insurability is at its peak, and you can get the best rates on your life insurance policy.
Tax Benefits
Tax can be saved with life insurance policies irrespective of what plan you buy. The premium you pay towards your insurance policy is eligible for a maximum benefit of Rs 1.5 lakh under Section 80C of the Income Tax Act,1961. Even proceedings received on death/maturity are tax-free under section 10 (D) of the Act. Note, in any case; tax advantage should only be considered as an extra benefit. Never invest to save tax.
Conclusion
Undeniably, life insurance is an excellent tool as it caters to both needs – emotional and financial protection. It also encourages disciplined saving, which can eventually lead to corpus creation in the long run.
We all agree that it is impossible to predict the future. However, we can surely control the uncertainty with the proper mix of life insurance policies.
Article by