Have You Ever Thought About What Life Insurance Can Do?
Life insurance is a very important requirement in life. It has many benefits and can help you in several ways. The biggest advantage is that life insurance can financially help your family in your absence. If you are thinking about getting life insurance but aren’t very sure of what it can do for you, take a look at this article. We will tell you all about the multiple uses of life insurance and you will get to know exactly what life insurance can do for you.
- Support your family after your demise
The main purpose of life insurance is to offer financial coverage to your family if you happen to die within the policy period. You pay the premium to the life insurance company. In return for that, the insurer promises to cover your life and if you die within the tenure of the plan, the sum assured is paid to your family. Your family can then use the money to pay their usual bills, to pay for the health care and education costs, to pay rent, to clear loans, etc. In other words, they do not have to alter their lifestyle or suffer financial setbacks because you, the main earner of the family, is gone.
- Combines insurance and investment
Investments are crucial in everyone’s financial journey. However, investments carry risks and as a person with dependent family members, you may not want to risk your money. However, getting life insurance takes care of this. You can invest in a safe manner while keeping your life insured too. This is an excellent way in which life insurance helps.
- Support you during your retirement years
Another important usage of life insurance in retirement planning. You can easily and effectively plan for your retirement years with the help of an annuity life insurance plan. Such a plan offers a life cover and simultaneously, gives you the opportunity to build up a retirement corpus. This is a major benefit you get. The retirement plans offer many flexible options through which you can save now and make your twilight years smooth and worry-free. You also get assured of a regular payout and that gives you the assurance to stay financially independent till the last day of your life.
- Offer protection when you are ill or disabled
Life insurance can do some very amazing things for you. Life insurance coverage doesn’t just help your loved ones financially after your demise. It also offers a solid financial backup to you and your family if something untoward happens to you. This includes a serious illness such as stroke or cancer. Or a major disability such as loss of limbs or paralysis due to an accident. In such health conditions, you often lose your ability to work and earn a livelihood. This affects your entire family and they face the tremendous economic strain. To avoid this, you can invest in a life insurance rider such as the critical illness rider or the disability rider. If you do so, you will get a sum assured when you cannot work due to your health restrictions and that would help your family and you in a comprehensive manner.
- Take care of your child’s education
Your children are the most prized people in your life. You do everything to ensure they have a smooth and happy life. The child life insurance plans help you out here. You can get life insurance cover and secure your child’s future. The child plans, ULIPs, etc can be used to cover the financial milestones of your child. You get regular payouts with which you can easily pay your kid’s school fees, college admission fees, etc.
- Help save tax
Life insurance can help you save tax and that is a major advantage it offers. You can save tax on the life insurance premium you pay. A maximum tax benefit of INR 1.5 lakh per annum is available under Section 80C. There are other benefits available too if you take riders. For instance, for a health insurance rider such as a critical illness rider, you can get additional tax benefits under Section 80D.
These are the main ways in which a life insurance plan proves to be beneficial for you.
Getting life insurance
Before you get a life insurance policy, there are a few important factors that you must assess. They are:
- Understand the type of plan you need
There are various categories under which life insurance is available. You get the endowment plans, term life plans, money back plans, ULIPs, annuity plans, etc. Understand the scope of coverage available under each plan and weigh them against your needs. Then, find the right type of cover and get the maximum value out of your life insurance investment.
Always buy life insurance after you compare your options. Comparing life insurance is a quick and easy option. When you compare, you get to see the plans side by side. This helps you to make an uninformed and unbiased choice. You find the best plan at the best rate and that makes the coverage affordable for you as well.
- Get the right cover and tenure
Life insurance can be useful only if you have the right cover for the right duration. So do the match and see what type of coverage would be suitable for you and your family members. Also, analyze the tenure for which you should stay invested in the life insurance plan. Getting the right cover makes a lot of difference so keep this in mind at all times.
The final word
As you can see, life insurance can do a lot for you! This is why experts all around the world tell you that life insurance is a big necessity in life. If you haven’t invested in a plan yet, do so right away. However, remember to do your research, get a plan as per your requirements and also get a smart and affordable cover. Once that is done, enjoy the protection it offers and also the other benefits and stay secured.