Importance of Life Insurance – LI’s Benefits

Importance of Life Insurance

Are you looking for Life Insurance quotes? If yes, you should read this article regarding the importance of life insurance. This article is well-furnished by our team members and we are not going to give quotes for the life insurance. We just publish the benefits of life insurance so you can secure your family’s future easily.

Life insurance not only provides you security benefits but also provides many other benefits. For example, some life insurance plans can help you save tax and make money. However, while buying a life insurance plan, your priority should not be to make money, but to protect yourself as well as your family.

Five Benefits of Life Insurance

Following are the key benefits that a Life Insurance Policy provides to the policyholders.

1. It Secures Financial Condition: It helps you to secure your finances during any emergency. Some life insurance plans come with a survival benefit from which you get the sum assured at the maturity of the plan. On the other hand, term plans are pure security plans.

2. Tax Saving: A policy taken under life insurance can help you claim a maximum deduction of Rs 1.5 lakh. 1.5 lakhs under Section 80C of the IT Act, any bonus or amount received under the life insurance policy will give you tax exemption under Section 10 (10D) of the Income Tax Act.

3. Generates Income: A person can also make money using insurance. Insurance plans such as the Unit Pasand Beema Yojana not only help in securing but also help in generating a good corpus for future financial goals. The Sum Insured also acts as a security against which you can get loans from banks.

4. Diversification of Liability: When you take a home loan, you have a liability to repay the loan amount of 15 to 20 years or more. It runs as monthly installments (EMIs). Imagine a scenario when something happens to the home loan payer in case of a joint home loan? If insurance or something happens to your spouse, having an insurance plan helps to limit liability. In such a case, the loan amount can still be paid if something happens to the insurer.

5. Security of Family: If you are the only one earning in your family, then it is important to get an insurance plan. Insurance provides protection to those dependent on you. It provides a cushion against your financial liabilities before making any investment or loan for your financial goals. Experts recommend taking a term insurance plan in the initial phase of life insurance as it will pay a small premium for it and will provide a larger cover.

So, these were the five benefits of life insurance. Its importance is not limited. There are so many points that comes under the importance of LI. You can experience them in your life and you can ask your finance advisor about the same. They will tell you about the properly. If you want to ask any question related to this subject, don’t hesitate in leaving your comment beneath.

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