Why you should buy life insurance

There are many financial investment plans, but life insurance can be seen as one of the most important plans. There is a myth among people that when they get older they just need to get one, but this is all so wrong. Bank deposits and other savings plans are some other investment options, but insurance trumps them all. Besides being a means of providing financing for future financial goals, it also provides security to your loved ones in times of need. There are many valuable reasons why you should take out a policy now.

• Security – The first and most important thing it can provide is financial security for your family after your death. None of us can see into the future and there are many cases of premature death every year. It is your responsibility and duty to ensure that your loved ones remain fully secured, even in your absence. Insurance plans can provide this security in several areas, such as spending on your children, as a substitute for the income you’re missing out on because of your absence.

• Assistance in achieving future goals – When planning or deciding on a goal, you should calculate how much money may be needed to achieve that goal. An insurance policy can provide security in terms of financing even in the most unfortunate situations.

• Retirement Goals – Life insurance can ensure a steady stream of income remains in each month. When you regularly invest in a plan, a fixed income is also assured after retirement. No one can guarantee that someone will have a longer working life, especially since there are many threats and problems, such as illness and company burnout rate, which can happen to anyone. An individual’s retirement period can potentially become as long as the working period and so it is vital to build up a bulk in the working period so that the retirement period can be properly enjoyed. Expenditure on an annuity can contribute to this.

• Tax Benefit – You get a number of tax benefits by purchasing an insurance policy, such as the term benefits are exempt from tax under Section 10 (10D), and also the premium paid can be deducted when calculating your income tax liability of 1961 Act.

So you can see that there are so many benefits of purchasing a life insurance policy in providing security and also for investment and savings purposes. So it can be a good option to think about getting one at a young age.