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8 Reasons Why You Should Buy a Life Insurance Policy Research Team | Posted On Monday, June 17,2019, 04:46 PM

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8 Reasons Why You Should Buy a Life Insurance Policy



There is no particular time to avail a life insurance policy. The best time is Right Now. If you have dependents, you need life insurance. The life insurance plan must offer maximum cover at minimum premium.

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8 Reasons Why You Should Buy a Life Insurance Policy

If you are still confused on buying a life insurance plan, here are 8 reasons to guide you:  

1. If you are the Sole Breadwinner:

If you are the sole earning member of the family, then a life insurance policy is a must. This plan takes care of the financial needs of the family, on an unexpected demise. You can also avail riders which are additional benefits to enhance the cover. A life insurance policy is important to secure the future of loved ones in your absence.

2. When You are Young, Hale and Hearty:

The best time to avail a term insurance plan is when you are young (Late twenties and Early thirties). Premiums are low and you enjoy maximum cover. Young people are less prone to chronic illness and insurers offer the best deals on availing term life insurance at a young age.

See Also: Life Insurance Policies

3. When You Plan to Buy Your First House:

A life insurance policy helps pay back loans on an unexpected demise of the policyholder. Family members use the death benefits to repay home loan, car loan or personal loans.

You may have financial goals like buying a dream house. On an untimely demise, your family realizes this goal by paying off the home loan.

4. Do Not Depend on the Company Life Insurance Cover:

A group life insurance policy offers cover, only as long as you are employed with the firm. With a change in job, your company life insurance plan lapses. On an unfortunate demise during the switching of jobs, your family loses the death benefit.

Avail your own term life plan to cover family members on an unexpected demise. Your family is well taken care, even when you switch jobs.

See Also: Different Types of Life Insurance Policies in India

5. For Tax Purposes:

The premiums you pay on life insurance policy help avail tax benefits. A term insurance policy helps save taxes. You get a tax deduction up to Rs 1.5 Lakh a year under Section 80C of the Income Tax Act. Death benefits enjoyed by family members in term life insurance are tax-free.

6. For Your Children:

A term life insurance plan helps secure kids future in case of an untimely demise. Your family gets the death benefit and with this money your kids enjoy a good education and a bright career. There’s money for children’s marriage.

7. For Investment Purpose:

There are variants of the life insurance policy that can be bought for investment and savings. The most popular among them are endowment plans and unit linked insurance plans or ULIPs.

Endowment Plans offer the twin benefits of insurance + savings. ULIPs offer the twin benefits of insurance + investment. These life insurance plans offer maturity benefits on survival of the tenure of the plan. You get sum assured + bonus with endowment life insurance plans.

8. For the Elders in Your Family:

You may also avail a term life insurance plan to support dependents when you are not around, like your parents. If you are the only child and your parents are financially dependent on you, then this money comes handy on an untimely demise. By availing a term life insurance plan, you can secure parents financially, even in your absence.

See Also: What is a Term Life Insurance Policy?

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