Aditya Birla Sun Life Insurance Company Limited

Importance of Life Insurance in Your Healthy Financial Portfolio
@ Aditya Birla Capital

Life insurance is becoming more and more popular with every passing day. There is good reason for this as well. Life insurance is an all-in-one product – it offers a life cover, it takes care of the financial requirements when needed, serves as a pretty effective investment option and it also helps you save tax. As a result, life insurance must be a part of your financial portfolio. Take a look at this article to understand why it is important to buy a good life insurance plan and make it a must have part of your portfolio.

Reasons why a life insurance plan is important

There are many reasons that make a life insurance policy an indispensable part of your financial portfolio. Some of them are:

  • Life cover: The primary objective of life insurance is to cover your life. As a concerned person, you would always want the financial future of your loved ones to be protected, even if you aren't there to support them. And since life is unpredictable, it is very important to buy a life insurance plan and cover your life. If anything were to happen to you, your spouse and kids would never have to worry about their finances. This is the biggest reason why you need to include a good life insurance policy in your financial portfolio.

  • Covers your debts: Can you imagine what your family has to do to arrange the funds to pay off your large home loan if you die suddenly? A life insurance plan covers your mortgages and ensures that after your death, your family members are not forced to take up any such financial burden. This protects the overall financial stability of the family in the long run. This is another reason why life insurance is important.

  • Helps you save: If you invest in a good endowment plan or even a ULIP, you will get to save a lot of money. There is an added advantage of saving money in an insurance plan – you stay invested while your life is also covered. This dual benefit of life insurance makes it a standout investment option. This is a valid reason for you to include life insurance to make your financial portfolio a healthy one.

  • Tax saving tool: Under the Indian Income Tax Act, you can get a tax reduction under Section 80C of The Income Tax Act 1961 for the premium you pay towards your life insurance plan. There various other tax saving benefits available with life insurance too. Tax saving is a priority for everyone. And since life insurance allows you to save a lot of tax in a legitimate manner, your financial portfolio must boast of a good life insurance plan.

  • Protects your other financial assets: You may have mutual funds, equities, fixed deposits, shares, bonds and even some cash in your financial portfolio. It is important to protect the portfolio with a life insurance plan. How, you may ask? Well, if you died suddenly and left your family without any financial backing, they would be forced to sell off the assets from your portfolio to make ends meet. This would prove to be disastrous and rob your family of the higher yields. So to prevent such a calamity from taking place, include a life insurance plan to protect the other components of your financial portfolio.

The bottom line

As we saw, a good life insurance plan is a very important component of a healthy financial portfolio. It offers a comprehensive financial protection and it also gives you a lot of mental peace. So if you haven't bought life insurance yet, do it without any further ado. There indeed are many benefits of making life insurance a part of your portfolio.

Toll free (Within India):

1800 270 7000

Outside India: :

+91 22 66917777

(Call charges apply)

Between 9 am to 9 pm, All 7 Days

Send an Advisor

Mail on:

care.lifeinsurance@adityabirlacapital.com

Get to a branch closest to you

Connect with us on Whatsapp:

Send "Hi" on 8828800040 from your registered number and get your policy information on your fingertips

Other Related Articles

What is the difference between participating and non-participating policy?

When you go shopping, you compare different options, choose the best out of the lot and then negotiate for... Read more

Importance of disclosing correct information before signing up

You may take the effort of sending a bouquet of flowers for your wife's birthday; however, if you do not give...Read more

How much insurance do you require?

A good life insurance policy can protect your family's future in your absence. Having adequate life insurance...Read more

After receiving your policy

Know your rights and duties as a policy holder. As an informed consumer, you should always be aware of your rights and duties...Read more

Beginner's Guide to a Healthy Life Insurance Portfolio @ Aditya Birla Capital

Life Insurance is an understanding, a contract between two parties, namely the insured and the insurer. As a part of this understanding...Read more

How to Deal with an Insurance Policy in the Agent's Absence

Your life insurance adviser is a highly qualified and specially trained individual, who not only helps you in selecting...Read more

Importance of Life Insurance in Your Healthy Financial Portfolio @ Aditya Birla Capital

Life insurance is becoming more and more popular with every passing day. There is good reason for this as well...Read more

Insurance and Inflation

As the next generation of entrepreneurs, engineers and other professionals take over the mantle of India's economic growth, it is time...Read more

Insurance Industry-Road Ahead

The Insurance Industry continues to be a major contributor to the national GDP, as an integral part of the robust Services Sector, and is...Read more

Meaning and Importance of Life Insurance @ Aditya Birla Sun Life Insurance Articles

My Wife's friend Ratna understood the meaning of life Insurance when her husband Amit suddenly met with a tragic car accident and died at...Read more

The important insurance terms to be aware of in India

Buying insurance in India is often a matter of navigating a lot of jargon before understanding the policy's true benefits...Read more

Understanding Inflation

Over the last few years we have witnessed how food prices have risen dramatically. A pack of 100gm biscuits which cost...Read more

What are riders? Why do I need these riders?

When you are looking for that perfect life insurance plan to protect your financial needs, how do you make sure that a policy...Read more

What Are The Different Kinds of Life Insurance Policies?

The TDS for life insurance policies where maturity proceeds are taxable have been halved from 2percent to 1 percent in Budget...Read more

What are the different kinds of riders?

Better coverage, lower premiums, longer tenure or more benefits? Which should you choose while buying an insurance policy?...Read more

Which income tax slab do I fit into?

The end of every financial year in March sees a scramble to collect proofs of investment, submit bills to claim reimbursement for...Read more

Which Income Tax slab suits me best?

As soon as the month of March dawn upon us (end of financial year), everyone runs helter-skelter collecting proofs of investment,...Read more

Why premium should not be the only criteria for buying life insurance @ Aditya Birla Sun Life

You need to plan properly and then buy a life insurance policy. A life insurance policy is a vital requirement these days and you cannot...Read more

Why Should you demat your Insurance Policies

After the news that the IRDAI plans to dematerialise life insurance policies on the same lines as demat of shares held by...Read more

Why taking life insurance matters

Buying life insurance has become extremely simple and also necessary in India. Life is completely unpredictable. Things...Read more