Why Life Insurance Is Always A Smart Decision?

[Rishi Agarwal]

Life is filled with uncertainties and there are many things which we cannot control. However, you can make your life secure and safe, if you have plans in place to deal with the uncertainties and protect your family. One of them is Life insurance. Whenever someone mentions Life Insurance, the first thing that comes to mind is death. The word Death is scary and no one wants to imagine or discuss their own death. If the whole family is dependent on you, then just imagine- what will be their life after you die? You leave some inheritance before you go from the world. The only way to do that is by securing yourself and your family with a comprehensive life insurance plan. This Life Insurance will also bring financial stability to your family, not only pay for your expenses, take loans from your own savings, enjoy all the benefits after retirement and many more.

Life insurance is always a smart decision for various reasons mentioned below.

Robust financial protection to your family

As you move on in your life, start a family and have kids, you add more responsibilities to your plate. Slowly, you become the most dependable person in the family. They are happy with you right now. However, as you grow older the uncertainties of your life increases and there comes the need for Life Insurance. You should have some source to help your family meet all the needs after you are gone. While working, you can enroll in one of the life insurance plan, which will pay you back after your death.
Pay for the monthly household expenses/ pay outstanding debts
The insurance plan will not only cover the daily living expense for your family members, it will also provide for any additional debt or expenses related to your death. You will never want to add a financial burden on your family along with the emotional burden, once you are gone.

Will ensure your family goals are intact

Life Insurance will act as the financial security net for you kids who will go for higher education, or your wife who will want to start a new business to become financially independent. The money will definitely not replace somebody after his or her death, but definitely help to lead a better life meeting all the basic needs.

Own peace of mind

If you know that your Life Insurance will have enough money for your family to meet their basic needs, even after years if you die, there will be peace of mind that you have saved enough for your family after you.

Financial Security in Life Insurance

Financial needs keep changing with time. As you move forward in your life, the financial need increases. To lead your life comfortably, money is important. Life Insurance helps you meet all the financial needs of your loved ones. In case there is an upturn in your life, your loved one will definitely lead a better life through the security financial plan. It is important for you to have at least one Life Insurance plan before you start working. There are certain benefits of starting early. You have to pay less premium amount and you do not feel like paying anything for any of your plans. At a later point in time, you can always revisit and change the plans according to your need. There are several add-ons available in the market to make your life insurance attractive and assist your family.

Addition Income and Life Insurance

Along with the benefits it offers to your family upon your death, Life Insurance also acts as a source of income for you in your lifetime. There are several ways to enrol in the plans. When you add up on your whole Life Insurance, it acts as a savings account after your retirement. You need not pay for the premiums after your retirement and can simply enjoy the dividends you get on the additional amount paid on top of the premiums. Market-linked insurance plans act as an investment for you and you get your share of money from the investment in the equity market. The extra source of income definitely helps you get going with your personal needs and to meet the needs of the family.

Tax Saving

Everyone wants to save on tax and doing the same through life insurance serves the dual purpose of saving tax and insuring your life. Yet, the rules of taxes on deduction of insurance premiums are dynamic and ever-changing, making it difficult for common men like us to keep up with it. Therefore, you have to be constantly updated about them, so as to buy the most beneficial and latest life insurance plans.

Thus, this article has been curated to help you understand the ever-changing taxation laws. This will subsequently help you find the most popular life insurance plans in 2018 and the best life insurance companies for it, while keeping the tax saving purpose as the foremost priority.

Steps to Save Tax in Life Insurance

Life Insurance

Life insurance is a smart decision that offers financial backing to your family in your absence. Life insurance policies are available in different types with endowment plans, term life insurance plans, whole life policies, money back plans, and unit-linked plans (ULIPs). All of these policies also help you save tax, as the premiums paid on them help you avail tax deduction as per sections mentioned in the Income Tax Act, 1961. Tax exemption of up to INR 1.5 lakh p.a. is allowed under this Section 80C of the Income Tax Act, 1961. This benefit can be availed by you, your spouse, and your dependent children.

Conclusion

Choosing the right Life Insurance plan is one of the most important and smart decisions you will take in your life, as you are not alone in the plan, your loved ones are also included there. You should carefully explore all the options available to you before going for a life insurance plan. Coverfox.com offers advance tools like comparing life insurance plans, Human Life Calculator, Online insurance premium calculator for ease in selection. These online tools not only make choosing the life insurance plan quick and easy, but also ensure you get a deal that will be worth every penny of your hard earned money spent on life insurance. So don’t delay further and get your life insurance today as it is one of the most smart investment decision you will make in your life.