Do You Really Know That Insurance Is A Smart Investment in insurance
Money lying idle in your bank account is not going to grow
by itself and you need to make smart investments so that you can not only
safeguard your present, but also your future! While investing in mutual funds,
fixed deposits, and real estate is a good idea, investing your hard earned
money in insurance can be one of the wisest decisions you will ever take! Most
of us tend to believe that bad things happen to others, financial constraints
and emergencies are faced by others and life will go on forever! However, such
misconceptions cloud our judgment for rational decisions to be taken when
facing the uncertainty of life! Therefore it is important to understand why insurance
is so important for us.
Let’s bring to you the top most reasons for the same:
1) Income
Many of us are the sole bread-winners in our family. In case
of an unfortunate event of a life-altering accident or untimely death, the
dependents have to face the hardship of surviving without having any financial
support. However, if there is an investment made in insurance, it provides a
buffer against such financial hardships. Not only does it provide a lump-sum
amount at the time of death, in case of accidents or any disease leading to hospitalization,
it also helps to take care of the entire medical costs. Also, under certain
insurance plans, one gets their income replaced under annuity payments after
retirement. All in all, a beneficial deal for the insured as well as for their
family members.
2) Perfect Investment
There are a lot of insurance products available in the
market offered by various companies. For example insurance plans like whole
life plans, pension plans, guaranteed income plan and growth plans are those
that offer the insured not only an assured growth in the invested premium
amount, but also provide insurance cover against death. This means that if the
insured lives till the completion of the policy period, he/she will get an
assured growth in the premium amount paid. And in case the insured
unfortunately dies before the period is over, his/her nominee would get the
complete insurance cover along with other benefits if mentioned in the policy!
In other words, while being alive and even after death, insurance is there to
help you grow your money and provide healthy returns on your investment, not
only to you, but also to your near and dear ones!
3) Loans
After the liberalization of 90’s, more and more people are
living under the burden of loans. While you’re earning and able to pay your
monthly installments, it is all good. However, in the case of an unfortunate
death, all that debt becomes responsibility of the dependents and family
members. This becomes an extremely delicate situation, especially if there are
children and elderly in the family who can’t earn and pay back the debts. In
such a scenario, if a substantial amount of insurance cover has been taken, it
comes as a real help so that one is freed from the loans repayment and can
focus on moving on with life without any financial liabilities. Also, an
insurance policy can be kept as collateral in case of taking a home loan. It’s
kind of a double benefit. Not only can you buy your dream home, you can also
safeguard its loan with your insurance policy in case of any unfortunate event!
4) Tax Benefits
This is one of the most obvious benefits of insurance and
most people who buy it are told only about this positive aspect of investing in
an insurance policy. As per the income tax rules, an investment in insurance
policy can help you get tax rebates under Sec 80C and Sec 80D. This way, not
only you get insurance benefits, but you also save money for investing in it
that can be used for better purposes!
Therefore it absolutely makes for a brilliant decision to
ensure that you invest your money in a range of
Investment Insurance Policy financial
tools, especially insurance as it takes care of your life, while you are alive
and even in the unfortunate scenario of your death! This would mean that you
value your life as well as the life of your family members who should not face
any financial hardships at least in your absence!
The best thing to do right away is to pen down your
financial priorities and then search for the best insurance plan that meets
your requirements and then go ahead and buy it!
This is the right time, the right moment to take the right
decision!
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