Life Insurance Is Important

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Life insurance is important because life insurance that provides coverage for a specified amount of time. This period of time is known as the "term", thus giving you Term Life Insurance. The term has also been called "pure" insurance, in that it offers no cash value, only protection. When your policy is over, the money you paid cannot be refunded. Your policy just expires, and you either renew it or find another policy. Generally, the death benefit does not change, and your premium stays the same throughout the policy.     Everyone knows why life insurance is important, but many of us choose to ignore the reality of what would happen if we were to die suddenly without the proper protection and financial planning.

here are some reasons why life insurance and financial planning is a necessity, not an option:

Protect Your Family

If someone depends on you financially, then life insurance is a must. In particular, Financial planning is important for parents of young children or partners who would not be able to sustain their standard of living, if you were to pass away.

Pay Off Debts

Buying life insurance to protect against debt isn’t enough You also have to actually pay off your debt. that would be a burden to your family. if you were to pass away prior to them being paid e.g. mortgages, car loans etc.

Peace of Mind

There is no saying when exactly someone will pass away, but unfortunately, at some stage, it will happen.

So the money cannot replace someone in your life, but having life insurance and proper financial planning can give you peace of mind, should you want to take care of your family when you are gone.

Advantages of Life Insurance:

• Tax Benefits: Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans. Maturity benefits of most insurance policies are tax free under Section 10 (10D) and the premium paid is eligible for deduction under Section 80C of the Income Tax Act, 1961.

• Liquidity: Most Insurance products offer good liquidity after the lock-in period to take care of any emergency requirement of funds. But they do have inherent deterrents in the form of charges to discourage unnecessary encashment.

• Risk Cover: Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event. Death benefits are generally income-tax-free to the beneficiary.

• Flexibility: Many life insurance policies are exceptionally flexible in terms of adjusting to the policyholder’s needs. Insurance products, especially Unit Linked Plans, provide flexibility in terms of asset allocation to suit specific risk appetites, policy durations, premium payment terms and fund switching options.

• Loan Facility: Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought.

• Retirement Planning: Life Insurance is one of the best instruments for retirement planning. The money saved during the earning lifespan is utilized to provide a steady source of income during the retired phase of life.

• Long-Term Investment: Life Insurance not only provides for financial support in the event of untimely death but also acts as a long-term investment. You can meet your goals, be it your children’s education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.

• Assured Income Benefits: Your family stays secured due to the assured income they receive on regular intervals. This income aids in paying for all rents, loans and other expenses like house rent, telephone and electricity bills, Child education etc. This income compensates for the income that discontinues after the loss of the earning member.