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Here’s Why You Should Invest in a Life Insurance Plan

Here’s Why You Should Invest in a Life Insurance Plan

If you consider life insurance premiums to be one added expense that you are reluctant to incur every month, it’s time you think again.

We are living in an era where inflation is increasing faster than our incomes. All the more reason one can be reluctant about investing in an insurance premium.

But take a moment to introspect. If all your expenses are increasing every day, what would happen if something happened to you? Life is uncertain. One moment we are safe and sound, another we are not.

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Who would be paying for all these expenses that are increasing by the day if not you?  The best life insurance plan might not be able to save you from such uncertainties but can safeguard your family from the financial burden of death and inflation.

Having said that, we are going to give you all the reasons why you should invest in a life insurance plan at the earliest if you haven’t already.

Provides Your Family Financial Cover and Reduces Their Stress

Money is a necessity. One needs it not only to survive but to live a comfortable life. Your family members must have that even after you.

Financial stress is the last thing your family would need should something happen to you. Grief can be heavy, but it can get worse when one is not financially secured.

Life insurance can provide them financial security not only to allow your family to grieve in peace but to move on with their lives when the time comes.

Aids your Family’s Long-Term Goals

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Whether it is going for higher education abroad or starting a business, everyone has a dream.

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You must have some dreams for your children, or they have their own dreams. Nevertheless, these dreams can come to a halt if there is a lack of financial security after you are gone.

Life must go on, and so should dreams and long-term goals. Life insurance can not only provide a basic financial cover but additional funds to support the dreams and long-term goals of your family.

You Can Have a Stress-Free Retirement

Once you retire, you stop working, and hence your income stops.

All the more reason why retirement can be both a much awaited and a dreadful phase for most people.

If you are financially secured for your retirement, you’re good to go. But in case you are not, it is a cause of concern.

Much to the surprise, life insurance premiums can safeguard you from retirement-related financial crisis as well. Insurance premiums are a redeemable investment should you survive the term. In other words,

if you survive the term plan you availed, you can get your premium back and use it as your retirement fund.

It Is Affordable. You can choose the plan that fits your budget the most

Insurance premiums do not have to be an amount you cannot afford. You can always choose plans that suit your affordability. Every life Insurance company provides packages that fit your budget.

You can choose from a list of a company’s packages to find out which fits your needs the best.

Life Insurance Premiums are Cheaper Today than They Will Be Tomorrow

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Inflation has never been stagnant and never will be – that’s for sure. Prices of every commodity are going to rise in the near future – including your life insurance premium.

If you opt for insurance premiums today, you will get them cheaper.

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Additionally, if you opt for the best life insurance policy while you are still young, you can save more.

Insurance premiums are a tad cheaper for young adults than they are for middle-aged or elderly people.

You Can Save on Tax

Insurance premiums come with tax benefits. They are tax-deductible from your taxable income. For instance, if you pay INR 5000 as a monthly insurance premium, then your yearly premium would be 60,000.

Suppose your income is 6 Lakh LPA. 

Then, your taxable income would be, INR 6,00,000-60,000 = 5,40,000

In other words, your income tax would be calculated on INR 5,40,000, not 6,00,000.

It is One Less Problem for You to Worry About 

Do you worry as to what would happen to your family if something tragic happens to you? But this is not it, as an adult, you would have additional problems to worry about.

However, knowing that you have life insurance to secure your family financially in an event of your untimely demise, can spare you the stress. Ergo, having a life insurance policy would mean one less problem for you, and more peace of mind. 

why should you consider riders for your life insurance policy?

A Word of Caution

Whichever life insurance policy you choose, make sure you know your rights and duty as the policy purchaser.

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You cannot invest in a company that is not reliable, or the one that violates the promises it makes.  Do your research well.

 

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