Life insurance is a must have for anyone, it one insurance policy that you just cannot skip. It is a means to ensure that your family and loved ones are taken care of if something unfortunate were to happen to you. It can also be a great way to save money for your future needs. A life insurance plan can be bought by anyone at any given point in life. There is no specific age at which people should buy life insurance. It’s a misconception that only married people or people with families to take care of need to have life insurance. Life insurance is also a great way to save on Income Tax for unmarried people or people who are just starting off with their career.
If you’re someone who has recently started earning and are wondering how you can save on income tax or need a good place to invest your money in then read on, we’re going to tell you all the benefits life insurance policies have to offer you.
Family security - The basic benefit of life insurance is supplementing the income of the family in case of death of the policy holder. This is one of the main reasons why people buy life insurance. It gives the feeling of security to the policy holder in case of the worst.
Great way to invest your money - Insurance plans are of many types. There are some types of insurance policies that provide assured returns. Unit linked insurance plans provide investment opportunities along with life cover. In these plans a part of your premium goes to your life cover while the other part is invested in equity or debt.
Loan protection - The right kind of life insurance gives your family relief from loan payments during the time of crisis. If the policyholder has any loan payments pending after his demise, these policies will make sure that his/her family will not have to deal with them.
Tax benefit - Any pay out you receive from a life insurance plan is completely tax free under section 80C of the Income Tax Act. Even the payment towards the premium is exempted from tax.
A safe place for your money - A savings account is not the best place to save your money. You can easily be tempted to spend that money since it is so easily available. A life insurance policy not only keeps your money secure for a stipulated period of time but also gives you added returns on maturity.