Life Insurance is a product that is designed to provide a measure of financial protection to your family after your death to survive their future with a better financial base.
There are many things that we can’t predict. Still, there are tons of arguments coming up against buying Life Insurance. It is seen that people don’t believe in life insurance, as they don’t believe in claims. One thing here needs to be very clear- “Life Insurance is never about you, it is for someone dependent on you”. Even if you are a Businessman, your business cannot survive your demise, and you need to have this key-man insurance through which whoever is taking care of your Business will be able to pay all the expenditures.
Life insurance is one of those very important insurance products that you should buy before any other investment. This investment is for your family in a case where something happens to you as an earning member.
Life Insurance Covers Three Risks
What happens in the process, is you buy life insurance at an appropriate age for a particular duration, let us understand it as an example: if you are 25 age and you buy life insurance till your retirement of 65 age so you can buy a 40-years life insurance plan, which means you pay a particular fixed amount to an insurance company.
The major five benefits of buying life insurance are;
Your family is dependent on the income you generate. If something happens to you this income needs to be protected for them to stand financially after your death. Life insurance works as a sense of security for your family.
Life insurance is one of the most affordable insurance plans. However, we pay about 2% of our car’s present value as its premium. Term life insurance is available at as low as 0.1% of the sum assured. If you explore the insurance policies online are offers an extra discount on life insurance as compared to offline mediums. Do make sure you compare the insurance plans over online platforms to take advantage of these offering discounts and lower your insurance premiums.
Protects your business
If you are a business owner the business person is taking care of the profitability, the sales the marketing, and every different aspect of the particular business. When suddenly the key person is removed from that place, it does drastically affect the business. Life insurance provides the Cashflow that the business has in hand to find an alternative key person.
Life insurance protects you against liabilities.
A lot of people own Liabilities like business loans, corporate loans, or personal loans, when they pass away the remaining installments get passed on to the next generation so as a security it is important to make sure that these are immediately canceled if something happens to you as an earning member of your family.
Generally, you can claim an income tax deduction with your life insurance under section 80C, which allows for deductions up to 12000-14000 towards life insurance.
Life insurance protects your future potential income and gives it to your family as a death benefit. It also protects your family from all the liabilities that you might have taken in terms of loans These are the primary benefits of buying life insurance for every person, their family’s protection is the priority. It is important to buy life insurance if anyone is financially dependent on you.