What are the benefits of life insurance?
It is difficult to deny the importance of financial security in today’s world when we are surrounded by multiple threats. So, before you dismiss an insurance product, make sure you understand the benefits of life insurance well.
There are several types of life insurance policies available in the market today to suit diverse financial needs and profiles. Depending on your specific needs, the benefits of whole life insurance, term insurance or other combination of products may be suitable for you.
Let’s look at 5 benefits of life insurance so you can get a better idea :
It Takes Care of Your Family for You
There will be a time when you will not be there to take care of your family. But instead of avoiding this possibility, the best solution is to secure the future of our closest people and let them know we care about them. Life insurance is one of the ways of doing so. You can not only show that you love them, but you will also protect them when you are not physically present. Not to mention, financial stability is one of the major advantages of life insurance.
Payouts are Tax-Free
As responsible citizens of the country, we all pay taxes, such as GST or income tax. But one of the life insurance benefits is that you will not have to worry about taxes. The sum assured that your beneficiary would receive as a death benefit will not be required to count in the tax filings. Hence, the sum assured is tax free and entire money will be given to your beneficiary.
This goes without saying that the main benefit of life insurance is financial security. Should something happen to you, the next best thing you can do is come up with resources that will fulfil your family’s needs. Even though you cannot save your family from the pain of losing someone, you can make sure that your family is not financially dependent on anyone to maintain their lifestyle.
Peace of Mind
More than anything, the safety of a life insurance cover will give you the peace of mind that your loved ones will be secure even when you are not around. We live in uncertain times where accidents and health problems are on the rise, hence, getting a life cover for yourself can put your worries to rest.
Covers Expenses for Terminal Illnesses
If you have had experience with any kind of insurance, you will know that many companies provide riders and options. These riders can be added to your base policy to enhance the benefits of life insurance. Some of the common riders available are critical illness rider, waiver of premium rider, accidental death and disability rider, etc. Adding a rider will only strengthen the benefits of life insurance and give you more reliable financial support.
None of us can predict what might happen to us tomorrow. Hence, we need to make sure that we make appropriate plans and strategies to ensure that we leave our loved ones safe and secure. While you make investments for wealth creation and other purposes, make sure you consider the benefits of life insurance and secure the lives of yourself and your loved ones with a suitable plan.