Buying life insurance is considered as one of the most important financial decisions. However, according to a survey, only 10% of Indians are insured. Well, many people are skeptical and do not realize the importance of life insurance. Are you one of them? Do you think –“Do I really need it? Or should I just invest it just for the sake of investment?” And the question list is endless. They never imagine the worst scenarios. Life is really unpredictable. A sudden accident or an unforeseen mishap makes you the realization of how important it is to invest in life insurance at the right time.
Investment in life insurance brings loads of benefits in the form of financial security and mental peace.
- If you are only the breadwinner in your family
This is the most important factor, which will make you think about buying the life insurance. If you are the only breadwinner in your family then after your death who is going to look after your family? Your family is dependent on you even after you are gone. You do not want them to suffer, right? Life insurance acts as a savior for your family. They will be able to meet their financial needs through these covers.
- To achieve your long term goals
It is an instrument which keeps you invested for a longer period and in turn, it helps you in achieving your goals like planning for retirement, or buying a car or a house. Furthermore, you will also get diverse investment options, which come along with the different types of policies.
- To ensure a steady flow of income
Many life insurance plans can supplement your retirement goals. By investing in life insurance, you can ensure a steady flow of regular income every month. If you put your money in an annuity plan, then it is like a pension plan. Add a lump sum amount at regular intervals in life insurance products and then reap the benefits even after your retirement.
- If you invest at a younger age it will be cheaper
When you are single, the coverage cost is lower.
- If you are looking for tax benefits tools then this is the best one
Irrespective of your plan, you can save taxes with the help of your insurance policies. Under the section 80C of the Income Tax Act, a salaried person is eligible to reduce the tax liability.
- If you are in need of an urgent loan
Life insurance provides you the loan options. You can take a policy loan when you are in urgent need.
- To take care of your business
Life insurance is not only for yourself or your family. It does take care of your business as well. There are some policies which are specifically designed for the business purpose.
For all these reasons you will definitely need life insurance. If you haven’t invested then, take the plunge. With one investment, you are going to safeguard many lives.