Articles 118 views September 27, 2019

Life insurance policies are helpful in more ways than one can usually think of. It not only protects your future but also helps you inculcate a habit of discipline when it comes to your finances. Do you know the Top #6 Reasons to Buy Life Insurance? If not, then read on to know more…

Most young people have the misconception that insurance policies are for older people and that they don’t need one. This cannot be far from the truth. A good life insurance policy is one of the pillars of sound financial planning. Sure, it is important to invest your money in instruments that will help your wealth grow over a period of time. But the lack of a life insurance policy can hurt you even more.

In the event of any unfortunate events, the setbacks can easily deplete your savings and in some cases, even your investments. Since, we have no clue about what the future beholds, buying a life insurance plan can fend off any unforeseen events.

Top 6 Reasons to Buy Life Insurance:

Individuals who want to secure the future of their loved ones must buy life insurance. In fact, is the least that you can do for them. If you look beyond the insurance premium, here are some compelling reasons to buy one.

1. Taking Care of Debt: Your Plan B

In your absence, you would not want your family to take the burden of any financial liabilities that you have taken. Some common examples include a home loan, a car loan, a personal loan, etc. Most of the financial institutions would not understand the financial state and start looking for their money. Good life insurance will ensure that your family is not burdened by debts.

2. Taking Care of Loved Ones

While you might not want to read this reason, it is very important. In the event of any unfortunate event, a life insurance policy will look after the financial requirements of your loved ones. The policy can ensure that they do not have to cope up with financial stress on the top of all the emotional turmoil. The policy payouts can help your family continue with day to day activities, fund children’s education, maintain a lifestyle that you want them to, etc.

3. It is Cheaper when you are Young

Buying life insurance should definitely be on your cards if you have people dependent on you or have taken loans. Most life insurance policies are cheaper to buy when you do so at a younger age. This is primarily because you do not have a lot of risks. As you grow old, the associated risks also continuously rise. Thus, a policy at a younger age will help you make considerable savings.

4. Tax Saving

If you are not already aware of it, buying life insurance can help you save taxes as well. The premiums that you pay towards your life insurance policy are eligible for tax deductions under Section 80C. The section allows for a maximum benefit of INR 1.5 lakhs per financial year. Should the worst ever happen, the proceeds of the policy are also tax-free. Any payouts that a family receives in the case of the death of a policyholder, the amount is tax-free under Section 10D(D) of the Income Tax Act.

5. Easy Underwriting at an early age: You might not qualify later

It is recommended that you buy life insurance at the earliest, while you are healthy and fit. There is a possibility that you might endure certain issues later on, which might be the very grounds for certain insurers to not allow you to buy a life insurance policy. You always have the option to enhance the coverage of your policy with the help of add-ons.

6. Peace of Mind

Last, but not the least, life insurance symbolizes peace of mind. Given that life is full of uncertainties, being prepared to the fullest is the best that you can do. The addition of a life insurance policy to your financial portfolio will give you complete peace of mind from uncertainties. In fact, it can free you up from certain burdens, so that you can focus on other things. And it is important to keep in mind that even a small policy can make a huge difference. You don’t necessarily have to wait to get a policy with a big payout.

Life insurance policies are helpful in more ways than one can usually think of. It not only protects your future but also helps you inculcate a habit of discipline when it comes to your finances.