One of the key advantages of life insurance is that it provides a financial safety net for your family and you. With this, even if an unforeseen event knocks on your door in future, you and your loved ones will be financially secure.
Another advantage of a life insurance policy is tax benefits. Under Section 80C of the Income Tax Act, 1961, you can claim up to Rs. 1.5 lakhs of tax benefits in one financial year. However, tax benefits are subject to provisions of Income Tax Act, 1961, and are subject to change from time to time.
Helps Fight Rising Cost of Inflation
It has become difficult to manage our daily expenses and save a lump sum amount for the future simultaneously due to the rising cost of inflation. Investing in a life insurance policy ensures that you and your family are able to fight this rise in inflation rates in the coming years.
The Benefit of Additional Rider
One of the key advantages of life insurance policy is that it comes with the provision of rider benefits. Instead of investing in multiple life insurance policies to avail of additional benefits, you can opt for rider benefits. It not only adds various benefits but also increases your cover. You can opt from various rider options, such as Critical Illness Rider Benefits, Accidental Death Rider Benefit, Waiver of Premium Rider Benefits, etc. Please note that riders are not mandatory and are available at additional cost.
The premiums you will have to pay for life insurance will increase and become more costly as you grow. On the other hand, if you invest in a life insurance policy as soon as possible, you will get affordable and cheaper premiums. Moreover, you will be able to save more for your future and claim more tax benefits.
Your Retirement is Secure
With a life insurance policy, you will not have to worry about financial requirements after you retire. Numerous life insurance policies provide pensions every month, which will ensure that you are able to enjoy your golden years with peace and without any constraints.
Provision of Loan
We never know when our loved ones or us may come across a financial emergency, and we may have to take a loan. Investing in a life insurance policy comes with the benefit of provision of loan, subject to conditions mentioned therein. You can take a loan against your life insurance policy, depending upon your sum assured under the provision of the policy.
If you invest in a life insurance policy as soon as possible, it will help you create much more wealth than investing at a later stage.