When you plan the personal finances in your lifestyle, a good life insurance plan plays a major role by helping you cover the risk associated with your life. That’s why it is also termed as a risk protection plan that strives to secure the future of your loved ones in the event of your unfortunate demise.
Among the variety of investment options available to help grow your funds, life insurance continues to remain a popular option that covers a significant aspect of your life. Yet, a lot of people still haven’t invested in any life insurance policy as of now.
This article aims to help you know the reason why purchasing a life insurance policy is considered a smart investor’s move and how it can be helpful for you and your family’s financially secure future.
As life remains one of the most unprecedented things in the world, nobody knows what fate carries for you tomorrow. Moreover, a lot of deaths happen every day out of which, many are related to accidents, premature death.
It’s even worse if the deceased person was the sole earning member of the family. To even think of the hardships of the family left behind is certainly painful.
Such situations call for the need for a life insurance plan. It is the least you can do for the betterment of the future of your family and help them sustain a financially secure lifestyle in the event of your unfortunate demise.
Why Investing in Life Insurance Is A Good Idea?
- Ensures Your Family’s Safety
Valuable than any of the personal monetary benefits, the financial security of your loved ones is certainly the most significant reason to purchase a good insurance plan like Unit Linked Insurance Plan, especially if you’re the only breadwinner of your family.
With a life insurance policy, you can prevent your family from suffering through a financial crisis. Additionally, it also allows you to gain monthly incomes or plan for a priority like a child’s marriage or education. Some plans even allow you to cover your spouse under the same policy.
- Manage Your Monetary Liabilities
In the event of your absence due to death, you surely don’t want your family to struggle through the hassles associated with financial obligations like personal loans, housing loans, and auto loans. With a good life insurance plan, you can easily help your family take care of your liabilities.
Moreover, some insurers provide unit linked insurance plans that also offer you a guaranteed premium return feature that allows you to gain back all your premiums paid towards the benefits during your plan.
- Accomplish Long-Term Aspirations
There are various types of insurance policies that also provide you promising returns along with the benefit of risk coverage. With the help of such policies, you can easily accumulate a significant amount of money for your future.
This accumulated wealth can be utilized to help you achieve your desired life goals, especially in the long-term as with progressing time, your investments will keep growing and help you gain more returns as well.
- Plan for Retirement
If you’re currently working in the corporate sector and looking for an investment opportunity to plan for your retirement, a life insurance plan can act as a supplement for that too. Some insurance providers offer these policies with the option of a regular income stream offered every month.
With the help of this monthly income, you can easily manage your day-to-day expenses during your post-retirement days without having to depend on anyone to help you with financial resources or monetary support.
- Secure Your Business
A life insurance policy is not only available for individuals but can also be purchased by businesses in which your chosen nominees receive an amount, provided they should be a partner in your business.
- Save On Taxes
As per the current rules and regulations of section 80C of the Income Tax Act of India, life insurance plans are eligible for tax benefits and deductions. If you subscribe to the policy as an individual, you can enjoy a deduction of taxes on premium amounts of up to Rs. 1.5 Lakhs.
That’s one of the most attractive features of this policy that make it popular among the people who are looking for investment funds, specifically to save money on taxes.
- Develop Savings Habit
Any life insurance policy that offers you the benefits of investment and protection requires you to pay a specified amount of money known as premiums periodically. With such a disciplined investment, you can develop a habit of savings that proves to be very beneficial for your future.
By learning the art of savings, you’ll also be able to increase your risk tolerance and choose better investment schemes as per your financial preferences and capabilities. This will help you grow your current wealth and save for the future as well.
Best Life Insurance Plans Available in India
- HDFC Life Click 2 Protect Life: It’s a life insurance plan with income payout available from the age of 60 years onwards and allows you to transform your premium payment term from regular to limited pay.
- Canara HSBC OBC iSelect Star Term Plan: It is a term plan with a variety of options like covering spouse in the same policy and providing whole life coverage. The plan can be purchased at a very affordable price.
- ICICI Pru All-In-One Term Plan: It is an online term plan that offers critical illness benefit for more than 34 diseases and offers an accidental death cover option as well.
When talking about financial investments, there is no shortage of schemes available in India. However, if you’re just starting with investments, a unit linked insurance plan would be the perfect match for you as it is easy to understand and provides a myriad of benefits.
Moreover, these plans also help you accumulate funds for the bright future of your family in the event of your unfortunate death. Therefore, make sure you check out the various plans stated above.