There is no doubt that life insurance is the sound investment decision you can take. It may not be the primary concern for many people, but it can help in many ways. Purchasing a life cover is a vital step you can make. Investing in the right life cover means you are buying a secure and strong financial future of your family. Have a look to know the reasons why life insurance is a great investment for you.
Replacement of Income
It is the fundamental benefit that any life insurance plan offers. Buying a simple insurance plan can undoubtedly secure your family’s financial future. In case of any eventuality such as death, the insurance company will pay. The reason is that the death benefit is paid to the policy holder’s family if the person expires within the term of the policy.
With the life insurance plans, you have plenty of options to pick such as guaranteed income plans, whole life plans, money-back policies, etc. These plans provide growth of the invested amount along with the inclusive protection in the form of life cover. Moreover, such insurance plans promise maturity benefit.
The right life cover will act as a shield to take care of your long-term loans during a crisis when you are not around anymore. Also, by choosing the right amount of the sum assured, your family would not have to bear the trouble of loan repayments. In fact, the received money assured would be enough to pay off the pending debts.
If you are a salaried individual, then the burden of Income Tax payment might bother you. It does not matter which life you cover opt. When filing taxes under the Section 80C, your insurance premiums can be claimed as a tax deduction on your total income.
Buying a life insurance policy is important, and you can reap its rewards by planning. Before picking the policy, you have to identify your individual life insurance needs. For instance, you can try out this quiz provided by Health IQ on life insurance to get prepared for the health challenges that come with diabetes.