3 Reasons to Buy a Life Insurance Policy

by Himani Mathur Content Writer

Buying a life insurance policy is one of the most important financial decisions. The reasons for this are numerous. Regardless of the current income, no one can truly predict what the future holds. Accidents and mishaps happen without warning, and many people die prematurely, either owing to lifestyle diseases or accidents.

When the primary breadwinner of a family passes away unexpectedly, it can throw the entire family into financial chaos. Despite this, people neglect the need to get themselves insured until it is too late. Cases in point, only ten percent of all Indians are insured. Listed below are some of the many reasons as to why you should buy a good life insurance policy as soon as possible.

Compelling Reasons for Buying a Life Insurance Policy:

· Takes care of the financial needs of your family: This is one of the most important reasons for buying a life insurance policy. The death of the primary breadwinner of a family shackles his or her surviving dependents into a life of financial insecurity and penury. A good life insurance policy can forestall such an eventuality by providing the much-needed financial security to the family of the deceased. Be it for replacing lost household income, ensuring the financial security of your spouse or paying for your child’s education, buying a life insurance policy is the best way to ensure that your family members lead a happy and secure life even in your absence.

· Supplements retirement goals: Everyone wants their retirement savings to last their entire life. Buying a life insurance plan ensures that you will have a regular stream of income every month. Life insurance policies are a good way of investing money for the future. You can put in some money on a regular basis and enjoy a steady flow of income every month even post-retirement.

· Tax saving purpose: Irrespective of the policy you buy, you could save tax expenditure by insuring your life. A tax cut of up to Rs. 1.5 lakh can be obtained on the premium paid on an insurance policy. Additionally, in India, a life insurance policy is eligible for tax-free proceeds on death or maturity under Section 10(D) of the Income Tax Act of 1961. In this way, buying a life insurance policy can help you save your hard-earned income.

To buy a good life insurance policy, you can go to the website of a reputed and trusted online insurance broker in order to compare benefits, premiums, and exact quotes before making your decision. For the comfort and security of your family, be sure to buy a good policy from a reputed insurance provider such as Future Generali Insurance or any other insurance plan that guarantees speedy settlements and compassionate service from the company.