Why is life insurance considered to be a necessity today? It is because a life insurance policy not only protects your family financially but gives you the power to stay prepared for any contingencies in life. Getting a life insurance policy is one of the best financial decisions you could make. If the members of your family are financially dependent on you as their sole bread earner, their ability to manage household expenses, and maintain a standard of living can get affected in case of your unfortunate demise. It is why taking life insurance becomes essential. A life insurance policy secures the financial future of your family in more than one way.
Regardless of how much you earn, you never know what may happen next. Therefore, it is always better to stay prepared with life insurance by your side. Today, you can even use an insurance premium calculator before buying the policy to ascertain the estimated premium amount and plan thereafter.
What is Life Insurance?
Life insurance is a bond between an insurance provider and the policyholder. It guarantees to pay the designated amount to the beneficiary in case of the death of the insured person. In case something happens to you, your family will receive the sum assured in case of your unexpected demise within the policy period. You can easily use alife insurance premium calculator online to determine the premium costs immediately.
Benefits of Life Insurance
- Financial Benefits for Dependents
The most important aspect of life insurance is that you need to factor in that how will your loved ones manage finances without you, i.e. the sole earner in the family. Your family is reliant on you even in your absence, and you certainly do not want to let them down and compromise on their dreams.
- Future Planning
Since life insurance is an instrument that keeps you invested in the long term, it would help you protect your long-term goals, such as buying a home, a child’s higher education or planning your retirement. Life insurance also provides you with an opportunity to invest in diverse options that come along with different types of policies, including ULIPs (Unit Linked Insurance Plans), Child plans and more. Suchplans are tied to specific investment products that pay returns based on their performance. If you want to opt for an investment-linked policy, be sure to read the policy guidelines to understand the potential risks and returns.
As life insurance is an essential part of your financial planning, make sure that you use an insurance premium calculator to get an idea of how much you need to save each month/year for premiums.
- Tax Benefits
Life insurance is also an efficient tax-saving tool. You can save taxes with insurance plans irrespective of what policy you choose and buy. The premium you pay on a life insurance policy is eligible for tax saving benefits up to Rs 1.5 lakh under Section 80C. At the sometime, the death or maturity benefits from the plan are tax-exempt under Section 10 (D) of the Income Tax Act, 1961.
- Peace of Mind
Death is inevitable. In times of crisis, the least you can do for your family is to secure their financial future. They will already be dealing with the emotional trauma of losing a loved one; financial troubles will add to their worries. With life insurancecoverage, you can be assured that you have done your part in enabling your family tide over difficult times and come out stronger and self-sufficient.
Life insurance is a powerful investment tool for both protection as well as for helping you save in a disciplined manner, which leads to the creation of a good corpus for future. Your life insurance needs change at different stages of your life, depending on the financial obligations and dependencies. So, remember to analyze your needs carefully before buying life insurance. Today, with the help of alifeinsurance premium calculator online, you can compare different quotes and find the most suitable option.
Life Insurance to Supplement your Life Goals
The sense of calm you feel when you buy a life insurance policy will make you better prepared for this uncertain life. You will not have to constantly worry about your family’s future as you will be relieved that they will be provided with the needed financial support even after you.
While buying life insurance, you can use an insurance premium calculator to calculate your needs and premium amount. They also provide an opportunity to become an insurance agent and work with them to be financially independent.