Life Insurance: A Financial Investment to Protect Your Loved Ones
Ensuring your family's financial safety is paramount in today’s world, and a life insurance plan serves as a perfect tool for achieving this goal. It acts as a robust shield, ensuring your family’s financial stability by offering comprehensive support in your untimely demise. Read on to learn how life insurance can be a valuable financial investment to protect your loved ones.
What is a Life Insurance Plan?
A life insurance plan is a contractual agreement between you and the insurance company. In this agreement, the insurance company promises to pay your family and loved ones a specified sum after your demise. However, you must pay a premium at regular intervals so your family can receive the death benefits for various expenditures.
Why Should You Get Life Insurance for Your Loved Ones?
The following are a few reasons why you must invest in a life insurance plan for your family:
1. Financial Security for Your Family
One key reason for purchasing a family life insurance plan is that it will protect your family financially in your absence. The death benefit payout is a safety net that will help them stay firm when it seems impossible. They can use the amount to fulfil their financial requirements, such as daily expenditures, debt repayment, emergency needs, etc.
2. Flexible and Customisable
Life insurance plans come in different types, such as term insurance, unit-linked insurance plans, whole life plans, etc., that you can choose from according to your requirements. In addition, you can choose the policy tenure, sum assured and include riders in your basic insurance plan. These riders allow you to customise the plan according to your specific situation and enable you to receive extra coverage.
3. Beneficial for Long-Term Goals
Investing in a life insurance plan gives financial protection and enables you to achieve long-term financial goals. Many life insurance policies, including whole life insurance plans, offer life coverage and investment components that are useful in fund accumulation over time. You can accumulate these funds to achieve financial goals like a child's higher education or homeownership. It provides an opportunity to save and plan your long-term financial goals so you can live a financially sound and fulfilling life.
4. Helps Dealing with Financial Liabilities
A life insurance plan helps your family to deal with financial liabilities after your sudden demise. Your loved ones can utilise the amount to repay outstanding debts, such as loans, credit card dues, and other financial liabilities. It provides a monetary backup to your loved ones so that they can safeguard your assets.
5. Assist in Income Tax Savings
When you pay the premium towards your life insurance plan, you can avail yourself of deductions from taxable income. According to the Income Tax Act 1961, you can get deductions up to ? 1.5 lakhs under Section 80C from your income for such premium paid. In addition, if you include a rider in your life insurance plan, you can get further deductions up to ? 25,000 under Section 80D.
How to Apply for a Life Insurance Policy Online?
You can follow these simple steps to apply for a life insurance online:
Step 1: Visit the official website of your preferred insurance company and create an account by entering your details.
Step 2: Provide your information, such as name, contact information, annual income, date of birth, health issue, medical history, etc., and click the ‘Check Price’ option.
Step 3: Enter the life insurance amount, premium payment term, and other required details according to your preference and click the ‘Proceed’ button.
Step 4: Select the payment method and click the ‘Pay’ option to make payment via your debit card, credit card or UPI.
Step 5: After payment, you will receive the life insurance policy in your registered email address.
However, please note that this is a generic procedure for buying a life insurance policy in India, and the procedure may differ from insurer to insurer.
Final Words
A life insurance plan is a responsible and caring financial investment for your family. Choosing the right plan that will create a safety net for them will empower your loved ones to lead life confidently, even when you may not be there to guide them. Make sure to read all the terms and conditions of your insurance policy before buying it to avoid any hassle during times of need.