Did you know more than 400 people are killed in road accidents every day? These figures, released by the Government of India for 2016, make us realize how tentative life can be. Despite this, life insurance in India has a penetration rate of less than 30%. Yes, India’s life insurance sector is the largest in the world. However, there are merely around 360 million policies (as of September 2017) in a population of over 1.3 billion.
While we understand the importance of a death cover,what most people don’t realize is that life insurance is so much more than that. Even a brief glance at life insurance policy details would tell you it’s the only financial product that can secure your family’s financial future in a holistic way. What most people don’t realize is that life insurance is so much more than that. Even a brief glance at life insurance policy details would tell you it’s the only financial product that can secure your family’s financial future in a holistic way. Let’s have a look at how this financial product can put your mind completely at peace.
Top 5 Reasons for Buying a Life Insurance Plan
- The most important aspect is the death cover. It’s so reassuring to know that your loved ones are financially secured even when you’re not around to provide for them. Your family will not have to sacrifice their dreams (like higher education in a reputed institute) for the want of funds.
- What if you leave behind a financial liability? This could be in the form of a home loan, a personal loan or an overdraft on an account. You wouldn’t want your family to struggle with this financial burden, right? Don’t worry, search for the right life insurance online and this will be covered by the plan.
- Did you know the policy can be used as collateral to fund your child’s education or other needs that arise from time to time?
- There are tax benefits too. The premium you pay is eligible for a tax benefit of up to ₹5 lakhs under Section 80C of the Income Tax Act. Moreover, the proceeds that your loved ones receive will be completely tax free, under Section 10 (D).
- There are plans that provide assured returns on maturity. Thus, one can receive a steady flow of income post retirement.
While this financial product offers a number of benefits, what’s most important is to be aware of all the life insurance policy details before making a decision. This is because each plan may offer different advantages and you should make a choice depending on your priorities, financial status and the lifestyle you’d want your loved ones to enjoy after you’re gone. And, now you have the convenience of enquiring about life insurance online, from the comfort of your home.