10 Reasons To Buy Life Insurance Policy

Life is unpredictable, and none of us knows what the future holds. While we cannot control what happens in our lives, we can take steps to protect our loved ones and ourselves financially. One of the most important steps you can take to protect your financial future is to buy a life insurance policy. In this article, we will discuss the top reasons to buy a life insurance policy in India.

Why Do You Need Life Insurance?

Life insurance can add value in more ways than you expect. Let’s find out!

1. Financial Protection For Your Family:
   Life is full of surprises, which is why it's essential to plan for the worst, especially if you are the financial support for your family. Even if you have savings, they might not be enough to cover your family's expenses if something unexpected happens to you. That's where life insurance comes in. It ensures that your loved ones are financially supported and provides a lump sum payment to your chosen beneficiaries when you are not around.
2. Replacing Lost Income:
   Whether you have a regular job, are self-employed, or own a small business, your income is crucial for supporting your family's daily needs. From housing to food, utilities to clothing, car maintenance to loans, it's important to think about how these expenses will be covered if your income suddenly stops. That's where life insurance comes in - it can provide income replacement to cover your family's expenses in case of your unfortunate, untimely death.
3. Paying Off Debts:
   Even after you unfortunately pass away, certain debts may still linger, putting pressure on your loved ones to dip into your estate or sell assets to settle them. This could result in insufficient money available for necessary expenses. However, life insurance can provide a much-needed financial lifeline during this challenging period, easing some of the burdens your loved ones may encounter.
4. Supporting Your Family’s Dreams:
   Life insurance helps you protect your family's future by ensuring that their dreams, like your child's education, your retirement funds, etc., are covered.
5. Locking In Premiums:
   When you're young and healthy, you have the opportunity to secure lower life insurance premiums and assured coverage - compared to when you buy it in your later years. By purchasing a policy early, you can ensure that your premiums remain affordable and that you'll always have the protection you need.
6. Creating Wealth:
   Life insurance in India offers investment options to help you achieve various life goals. It has been a popular investment choice for a long time, and now more sophisticated products, such as ULIPs, are available. These products allow you to invest based on your risk appetite and save for both your own future and that of your family.
7. Retirement Planning:
   When you've worked hard to build a life you adore, it's crucial to safeguard your lifestyle as retirement approaches. Planning for retirement ensures that you have sufficient funds to sustain the lifestyle you desire after you stop working. Investing in a retirement plan, like a pension plan or annuity plan, is an excellent initial move towards accomplishing this objective.
8. Supplemental Coverage For Your Employer-Sponsored Plans:
   If your employer provides group life insurance as part of their benefits package, it's important to consider whether the coverage is enough to meet your and your family's needs. By purchasing an individual life insurance policy, you can supplement your employer-sponsored coverage and provide your loved ones with the financial protection they deserve.
9. Tax Benefits^*:
   Life insurance policies provide several tax advantages. The annual premium paid is eligible for a maximum tax deduction of ₹ 1.5 lakhs under Section 80C. Additionally, the payout amount is tax-exempt under Section 10(10D)^** of the Income Tax Act, 1961. The benefits, however, will be subject to terms and conditions.
10. Peace Of Mind:
    Knowing that your loved ones will have financial protection in the event of your unfortunate passing can bring some sense of relief to you. Life insurance provides a sense of security and can ease any worries you may have about the financial stability of your family.

Steps In The Life Insurance Buying Process:

Here are the steps you can follow to buy life insurance:

1. Visit our website.
2. Click on the 'All Insurance' tab.
3. Drag towards the desired life insurance policy type (endowment plan, savings plan, term insurance plan, etc.)
4. View all available plans under the chosen type.
5. Review policy wording, brochure, etc., for more information on each plan.
6. Choose the plan you want to buy.
7. Enter all personal details requested.
8. Customise the plan to fit your needs and budget by selecting cover amount, riders, policy term, etc.
9. Click submit and proceed with the application.

Additional Things To Consider

A life insurance policy is a crucial financial tool that can offer your loved ones financial security in the event of your passing. In addition to providing financial security for your family, purchasing a life insurance policy can also be done for a variety of other reasons, including paying off debt, funding your children's education, boosting retirement income, estate planning, business protection, and more.
When considering purchasing a life insurance policy, it's crucial to take your financial objectives and demands into account and pick the best form of coverage for your needs. Finding the appropriate coverage at a reasonable cost can be made easier by working with an independent insurance agent. Don't wait until it's too late to protect your family's financial future. Invest in a life insurance policy today.
In addition to the reasons outlined above, there are several other benefits of buying a life insurance policy. For example, life insurance policies can also help you:

• Provide for your spouse or partner:
  If you have a spouse or partner who relies on your income, a life insurance policy can help ensure that they are financially secure in case of your death.

• Leave a legacy:
  Life insurance policies can be used to leave a financial legacy to your beneficiaries. This can be particularly useful if you don't have many other assets to leave behind.

• Protect against inflation:
  Some life insurance policies offer inflation protection, which means that the death benefit will increase over time to keep up with inflation.

• Build cash value:
  Some types of life insurance policies, such as whole life insurance and universal life insurance, build cash value over time that can be used for a variety of purposes.

  
  

When choosing a life insurance policy, it's important to consider your specific needs and goals. For example, if you're looking for affordable coverage that will last for a specific period, term life insurance may be a good choice. On the other hand, if you're looking for lifelong coverage with the potential to build cash value, whole life insurance or universal life insurance may be a better option.
It's also important to consider how much coverage you need. Many experts recommend purchasing a life insurance policy with a death benefit that is equal to 10-12 times your annual income. However, this may not be the right amount for everyone. Factors such as your age, health, and other sources of income should also be considered when determining how much coverage to buy. Invest in life insurance today!