Why Buying Insurance is a Good Savings Plan?by Sanjay Nandy Digital Marketing Manager
Insurance is one of the best ways to protect your health, family and assets that are important to you. But it is more than that. It is not just your saviour during emergencies (accidents, medical emergencies, car/bike damage) but it is also a big savings scheme for you. In this article, we will tell you how.
Going through the below points you can understand the importance of insurance in savings and why you should consider to buy insurance plan online from a reliable company. Take a look.
4 Reasons Buying Insurance Plan is Considered a Saving
You need to pay premiums monthly or after a short period consistently till the time your plan matures. Failing to pay the premiums is not acceptable and there are penalties for that. So, you have to keep aside the premium amount from your monthly income or whenever it is due. This makes the insurance policy a kind of forced savings for you while providing adequate benefits and return.
Also, most insurance plans are affordable and provide widespread coverage. People with an average income level can buy a plan to secure their future and simultaneously, save some amount.
Provides Protection to your Family
One of the most important factors that make insurance plans a saving tool is that it shields the family of the insurance holder. It will act as a great safety net for the persons you love. It is the biggest relief for your family members too. You can have less tensions and anxieties in mind by knowing that there will be a way out if any unforeseen situation happens. The amount from the insurance will be huge and can be used for paying loans, child education or marriage, paying bills, etc. in your absence.
This is a significant advantage of insurance policies and a prime reason it is considered a saving plan. Insurance helps to cut down your taxes. Paying taxes is a huge financial burden on many and insurance reduces that burden. As per the Income Tax Act of India, there is an exemption on taxes up to 1.5 lakhs for the premiums paid for the insurance policy/policies. Thereby, the more you invest in insurance, the more you can save on your taxes. This is a great reason insurance plans seem a compulsory investment for many individuals in the high-income strata.
Finances Your Long-term Plans
Life insurance or term insurance plans also help to fulfil your dreams or long-term plans. When you will age and retire, you will get the maturity amount of the policies that you invested in, at an early age. The amount you receive will either help you chase your dreams like buying a house, owning a car or can help to clear your debts and financial liabilities.
Making wise decisions at the present age in financial matters will be rewarding to you in the future. To buy an insurance plan online is one such decision that you should not miss out on. Apart from providing financial security with widespread coverage during emergencies, the huge amount of assured maturity payouts that you get on survival/unforeseen circumstances will help to secure the future of your family.
Created on Jun 30th 2022 11:37. Viewed 239 times.