When you invest in life insurance, you invest in your life and in the wellbeing and happiness of your family. This is very crucial and buys you the all-important peace of mind. You also have the assurance that your loved ones won't face any money issues after your death. This is a good benefit you get when you buy a life plan.
How Life Insurance Saves You
Here are some ways in which a life insurance plan can offer coverage to you:
- Offers Life Cover - The biggest advantage of a life insurance plan is that it covers your life. The plan promises to pay out a pre-decided amount of money, known as the death benefit, to your beneficiaries if you die within the policy period. This is a very big assurance because as the head of the family, you always want to provide the best life to your loved ones. You do so by working hard during your lifetime. You can continue to make it happen after your death by getting life insurance in advance.
- Is Economical - It is not at all expensive, rather life insurance is extremely affordable. This makes it very easy for you to buy a policy and cover your life so that your family members would never have to struggle financially if you die unexpectedly. There are different forms of life insurance and while some are more expensive, others are very cheap. Thus you can definitely find a good plan within your budget and stay covered.
- Riders are Available - Apart from the life cover, you can also get the benefits of the life insurance riders when you buy a good policy. Riders are add-on covers that offer extra coverage. For insurance, if you buy a critical illness rider and then you are diagnosed with a critical illness such as cancer, the insurer will pay a lump sum amount with which you can get better treatment or pay off some of your loans. there are many helpful riders to choose from so you should make full use of them.
- Tax Rebates Available - You can save precious tax money with life insurance. Tax rebates up to INR 1.5 lakhs are available each year under Section 80C of the Income Tax Act for the life insurance premium you pay. This is a good way in which you can make savings.
How Life Insurance Protects Your Family
As you saw from the points mentioned above, a life insurance plan helps you in various ways. But what about your family? The ways in which a life insurance policy protects your family include:
- Pay Off a Mortgage - Your family can use the sum assured to pay off the debts you may have accumulated. They can clear the home loan and continue staying in the same house. They can clear off a personal loan you may have taken to fund a business. This will help them to stay financially sound without having to exhaust their own bank accounts.
- Pay All Bills With Ease - Even after you die, bills such as utility bills, medical bills, etc will continue to come and your family will have to clear them on time. If they have the financial support, it will become a lot easier for them to pay the bills on time.
- Attend Colleges of Choice - If you have small kids, you need a life insurance plan to protect their future and wellbeing. Higher studies are very expensive, so you need to ensure that even in your absence, they can afford to complete their education and go to the best of colleges that they wish to join. If you plan your life insurance properly, this can be achieved without too many hassles.
- Continue with the Same Lifestyle - Would you like it if your spouse, kids and elderly parents are forced to rent out a smaller house, let go of the driver and sell the car, stop going to the best private hospitals, etc? Certainly not! You would always want the best for them. So buy a life insurance plan so that they can continue with the same lifestyle even if you die and your income stops. They should not have to make any compromises or changes to their lifestyles as the funds received from life insurance can always help them to stay in a financially stable position.
These are some of the handiest ways in which life insurance helps your family after your demise.
In a Nutshell
To put it in a nutshell, life insurance is a very important and major life requirement. It is beneficial for you when you are alive and it is highly helpful for your family after you die. Do not stay without life insurance as you never know what danger lies at the next turn. Buy a good life insurance plan today, if you haven't done so already, and keep everyone you love safe.
