What are the Benefits of Having Life Insurance?

Why should you have life insurance in India? It offers you a high life risk coverage to financially protect you and your loved ones in the event of your unfortunate demise. You need to pay regular premiums to receive the cover. Life insurance is of two types. Term life insurance lasts for a particular number of years. The policy offers a lump-sum payout if you die within the specified term. Whole life insurance lasts for a lifetime, offers a death benefit and has a cash value component against which you can borrow, withdraw and invest as long as you live. 

Here are the benefits of having life insurance. 

Death Benefit

This kind of insurance provides your family with a secure future. If anything unfortunate happens to you, the insurance provider pays out the whole amount (the sum assured along with the bonus) to your family. 

Returns on Investment

Life insurance schemes in India provide higher returns than other investment avenues. Most of these schemes offer bonuses, unlike other investment alternatives. The money you invest in the insurance plan is safe and also covers life risks. It yields returns and is paid out in full as a sum assured after the policy term is over or after your demise. In both cases, the returns and the invested funds are paid back safely. 

Tax Benefits

You can enjoy tax benefits from life insurance under the Income Tax Act, Section 80C. According to it, your premium payments towards the insurance policy are eligible for a rebate via a tax deduction of ₹1,00,000 from your gross taxable income. 

Loan Options

A life insurance provider allows you to borrow a policy loan if you have an urgent fund requirement. The loan amount is a certain percentage of the sum assured or the cash value of the policy. The percentage varies from one insurer to another. 

Assistance in Planning Life Stages

Life insurance helps you plan for fund requirements at different life stages by setting important goals. Since life insurance offers the benefit of a long-term investment, you can use the returns to finance your child’s education and marriage, a home purchase, your retirement and various other goals. 

Assured Income Benefits

Your family can receive assured income from the insurance provider at regular intervals. With this income, they can pay off your loans, rent and other costs like child education, utility bills and more. The income can compensate for the loss of income after the demise of the earning member. 

Riders

Riders help provide more comprehensive protection by covering risks beyond the scope of the main insurance plan. These may cover personal accidents and critical illnesses and offer a family income benefit and waiver of premiums. They also provide tax benefits. For instance, you can claim tax deductions under Section 80D for premiums paid towards critical illness cover. 

Now that you see the multiple advantages of having a life cover, opt for the best life insurance policy from a reputed provider in India. Secure the future of your loved ones today!