WHAT ARE THE ADVANTAGES OF LIFE INSURANCE?

The idea of buying life insurance is often overlooked because people think they don’t need it. But a sudden accident or mishap leads us to realize that life can come to an end at any time without the slightest hint. What would happen then?

Your dependents, in addition to being grief-stricken, have to deal with the fact that they may have to deal with a sudden accident or misadventure.

The idea of buying life insurance is often overlooked because you think you don’t need it. But a sudden accident or misadventure leads us to realize that life can come to an end at any time without the slightest hint. What would happen then? Your dependents, in addition to being grief-stricken, have to deal with a multitude of responsibilities such as rent, loans, illness, child care, etc. The flow of income is interrupted and there is no alternative income. to a multitude of responsibilities such as rent, loans, illness, child care, etc. The flow of income is interrupted and there is no alternative income.

We never imagine the worst-case scenario for us. The mentality that “I don’t need to buy life insurance” must be abandoned, because misfortune can strike you at any time and at any age without any discrimination.

Financial security and protection are what an individual aspires to and life insurance is the perfect answer to this need.

HERE ARE THE ADVANTAGES OF LIFE INSURANCE

  • Cover against life risks
  • Benefits in the event of death
  • Return on investment
  • Tax benefits
  • Loan options
  • Life Stage Planning
  • Insured Income Benefits
  • Endorsements

COVERAGE AGAINST THE RISKS OF LIFE

Life insurance provides you with coverage against major life risks. It guarantees you and your family protection in the event of an unfortunate event.

COMPENSATION IN CASE OF DEATH

Investing in life insurance gives you and your family a secure future. In the event of the insured’s misfortune, the insurer pays the full amount, i.e. the sum insured and a premium to the bereaved family.

Life insurance also protects the interests of people whose income diminishes with age, people who have had an accident or retirees. There are many insurance policies available and you can choose the one that suits you best.

 

RETURN ON INVESTMENT

Life insurance plans have a better return than other investment alternatives. Money invested in life insurance is protected and covers risks. The invested funds earn good returns and are fully repaid as an insured sum, either at the maturity of the contract or after the death of the insured. In both cases, the money invested and the returns are safely repaid.

TAX ADVANTAGES

According to the Income Tax Act, life insurance is an effective way for employees to reduce their tax obligations. Under this law, investments made in the specified instruments are subject to reimbursement.

The amount available for repayment can be invested in :

  • Life insurance premiums
  • Retirement pension funds
  • Employee pension funds
  • Equity-linked mutual funds
  • National savings certificates
  • And public contingency funds

The amount invested in these instruments is eligible for repayment by deduction from gross taxable income.

LENDING POSSIBILITIES

Life insurance allows you to take out a loan against the policy in case you desperately need money. The amount of the loan can be taken as a percentage of the cash value or the amount insured by the policy, depending on the terms of the policy.

LIFE STAGE PLANNING

Life insurance helps you plan your life stages and allows you to set financial goals at your convenience. It not only provides financial support in the event of premature death, but is also a long-term investment.

You can achieve your goals, whether it’s educating your children, getting them married, building your dream home or planning a relaxed retirement life, depending on your stage of life and your appetite for risk.

INSURED INCOME BENEFITS

Your family is assured by the guaranteed income they receive at regular intervals. This income is used to pay all leases, loans and other expenses such as rent, telephone and electricity bills, children’s education, etc. This income also compensates for income that ceases after the loss of the member who was working.

THE BENEFITS

Riders are additional benefits that can be purchased and added to a basic insurance policy. These options allow you to increase your insurance coverage. Endorsements cover risks that are beyond the scope of the main life insurance policy, providing more comprehensive coverage.

Riders can cover critical illness, personal accidents, family income benefits and waiver of premium benefits. This additional coverage comes into play in situations where the main life insurance policy may not be in force. They also offer tax benefits and deductions based on life and health coverage.

For example, if you opt for an accidental death or critical illness rider, you can claim deductions from the premiums paid.

CONCLUSION

Life insurance is of course an absolute necessity. It is a tool to reduce risks and protect oneself, which must be taken out without thinking or making choices. After all, it is a life that sustains a considerable number of people. So protect that life by purchasing life insurance.

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