by manish pandye
Published Tue, May 9th 2017, 18:27 | Advertising
Life insurance is a contract with the insurance company wherein the policyholder pays premiums at regular intervals and in return, the insurance company pays a lump sum amount on the policyholder’s death. This money is given to the beneficiaries of the policyholder which includes spouse, children and parents.
The policyholder can choose a life insurance plan depending on his or her family’s needs and financial goals. Term insurance provides cover for a specific time period while some life plans provide protection for the whole life. Death benefits from any insurance policy are tax fee hence, nothing is deducted from the amount.
Now a question that would pop up is why it is necessary to buy a life insurance plan?
Here are a few reasons why you should avail a life insurance policy as early as possible.
· Life plans provide you high risk cover that can keep your family financially secure even in your absence.
· By investing in life insurance policy you secure your family’s future. Life insurance acts as a financial support during retirement, unforseen accidents, sudden death and critical illness. There are numerous life insurance policies available in the market and you can choose a plan as per your requirement.
· The money invested in life insurance plans is safe and covers all the risks. The money invested will fetch good returns and will be paid back to the beneficiaries after the completion of the term or after the death of the policy holder.
· Under section 80 C act of the Income Tax Act of India you can avail tax benefit of up to 1.5 lakh on life insurance plans
· Life insurance policy gives you the advantage of taking a loan against the policy. The loan amount will however depend on the policy provisions.
· Life Insurance keeps a family financially secured by providing an assured income at regular intervals. This income aids in paying rents, loans and other day-to-day expenses. This assured income compensates for the income that ceases after the death of the earning member of the family.
With all these benefits it goes without saying that Insurance Policy is a necessity in today’s uncertain world. It minimizes risk and acts as a protection tool that should be purchased without any second thought.