Indianmoney Facebook Indianmoney twitter Indianmoney LinkedIn Indianmoney Google Plus Indianmoney Youtube Indianmoney Instagram Indianmoney Medium
 
Home Articles Articles Reasons to Opt for Life InsuranceReasons to Opt for Life Insurance

Reasons to Opt for Life Insurance

IndianMoney.com Research Team | Updated On Wednesday, September 24,2014, 11:31 AM
5.0 / 5 based on 1 User Reviews

Reasons to Opt for Life Insurance

Insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance. It provides for the dependants after your death.

Since there are certain financial commitments you need to meet throughout life and do contribute in some way to the family income, you need to provide something even in death to secure the home, help the family meet expenses for a while, protect dependant parents, or secure the children or spouse.

Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.

How much insurance a person needs would vary, depending on lifestyle, financial needs and sources of income, debts, and the number of dependants? As an important part of your financial plan insurance provides peace of mind for any uncertainties in life. The following are the various reasons which conveys us the importance of life insurance.

  • 1. Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the family you leave behind and serves as a cash resource.
  • 2. It secures your hard earned estate on death by providing tax free cash which can be utilized to pay estate and death duties and to tide over business and personal expenses.
  • 3. Life insurance can have a savings or pension component that provides for you during retirement.
  • 4. Some policies have riders like coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly.
  • 5. Having a valid insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan.
  • 6. In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.
  • 7. Life insurance can be planned such that it will cover even your funeral expenses.
  • 8. Life insurance has double benefits, it protects and you can get your money back during strategic points in your life.

Insurance is vital to good financial planning and security but you would need to assess your personal risk and long term commitments. Insurance stands a person in good stead throughout life and can be used in case of emergencies during a life time by requesting a withdrawal or loan.

Did you find this article useful? You can Rate us
5.0 / 5 based on 1 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

/
Love Beyond Death Get It now!
 

How about our new look!

 
Great!
Mm.. Ok
Bad
 

Please select a category

Please write your feedback and suggestions