In today's era, monetary security has become essential for survival. Mishaps don't always knock before coming; hence financial aid is imperative. However, just earning money isn't enough. Letting your hard-earned money grow is also important and life Insurance is a good way of letting your money grow. Let us see how.
What is Life Insurance?
Life Insurance is a contract between the investor and the insurance company where the company pays a certain amount to the investor’s family upon any mishap like the investor's death. Therefore, it is a great medium for saving your money and provides monetary help during any risk. Moreover, it lets your money grow for future expenses such as a child's education, health expenses, etc.
Why Should You Buy Life Insurance?
Recently, life insurance policies have seen tremendous growth. Wondering why you should buy it? Let's see why.
1. Saves Taxes
Under Section 80(C) of the Income Tax Act, life insurance saves your taxes. The death benefits are fully tax-exempted. With one of the best life insurance policies, the premium paid by the policyholder can also earn tax rebates. However, these tax laws are subject to change from time to time.
2. Risk Coverage
One of the best Life Insurance policies covers all the risks related to financing and protects your family during monetary problems after the policyholder's untimely death.
3. Covers Health Expenses
If you get one of the best Life Insurance plans, it would cover majority of the illnesses and health expenses if the insurance holder falls sick.
Types of Life Insurance Policies
Various Life Insurance policies provide financial aid and various other benefits to the insurance holder and his family members. Let us look at some types of insurance plans and policies provided by leading companies.
1. Term insurance Plans
Term Insurance Plan is an agreement between the policyholder and the insurance company, where the insurance company provides a certain amount of money to the policyholder's family in case of his untimely demise. It helps you have a financial backup in case of such mishaps.
2. Child Insurance Plans
Child Insurance Plan helps you have a financial backup for your child's future goals, education, marriage, health expenditure, etc.
3. Unit Linked Insurance Plans (ULIPs)
Unit Linked Insurance Plans (ULIPs) are plans where you can both save and insure your money. It provides you with tax benefits and saving money with life safety insurance. It lets your money grow as well as enhance your saving aspect.
Tips on How to Choose the Best Life Insurance Policies
No doubt, various insurance companies are providing various insurance policies for investors. However, there are a few factors one should everyone keep in mind before buying a life insurance policy. Let us look at some of them.
1. Define the amount of cover expense
Before opting for a life insurance policy, one should define the cover expense required by the investor. Different life stages require different life plans.
2. Go for a top-rated insurance company and the best life insurance policy.
True, various insurance companies provide various policies but opting for a top-rated company with the best life insurance policy is more beneficial.
3. Buying life insurance at an early age is more beneficial.
4. Choose your term plan wisely.
A term plan is the number of years your family members may be financially dependent on you. For life insurance, choose your term plan wisely.
*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.