There are many financial investment plans out there but, life insurance can be seen as one of the most important plans. There is a myth among people that when they get older only then they need to obtain one, but, this is all so wrong. Bank deposits and other saving plans are some other investment options but insurance tops all of that. Apart from being a means to give funding for financial goals of the future, it also provides security to your loved ones in time of need. There are many valuable reasons why you must get a policy right now.
• Security- The first and the most important thing it can provide is financial security to your family after your death. None of us can see the future and there have been many cases of premature death every year. It is your responsibility and duty to make sure that your loved ones stay completely secured even in your absence. Insurance plans can give this security in various areas such as expenses for your children, as a substitution for the income which is lost with your absence.
• Help in accomplishing future goals- When you plan or decide on a goal you have to calculate how much money may be needed to fulfill that goal. An insurance policy can give the assurance in matters of funding even in the most unfortunate situations.
• Retirement Goals- Life Insurance can make sure that in every month a regular flow of income remains. When you invest in a plan regularly, a fixed income even after retirement is assured. Nobody can guarantee that one will have a longer working life surely as there are many threats and issues such as, illness and company’s burn-out rate which can happen to anyone. A person’s retirement period can possibly become as long as that person’s working period and so it is very important to compile a bulk in the working period so that the retirement period can be enjoyed in the right way. Spending on an annuity can help to achieve this.
• Tax Benefit- You get a number of tax benefits by purchasing an insurance policy such as the maturity benefits are free from tax under the Section 10(10D), and also the paid premium can be deducted while calculating your tax under the 1961 Income Tax Act.
Thus, you can see that there are so many benefits of buying a life insurance policy in giving security and also for investing and saving purposes. So, it might be a good option to think about getting one at an early age.
Source by Achal Mehrotra