Life Insurance is one of the major pillars of financial planning which is important to be considered by every individual. It is the simplest and one of the most efficient ways to safeguard the financial future of your loved ones in your absence. In order to avail the most beneficial life insurance plan in lowest premium rates, it is important for you to consider several different aspects of life insurance policy.
1. Consider Buying a Life Insurance Plan, if you are a Breadwinner of the Family- If you have a spouse and dependent children then it's obligatory to have a life insurance plan as it financially protects the family from any kind of unforeseen circumstances. However, it can be a great idea to consider using life insurance plan as a strategic financial tool.
2. Life Insurance Works more than Just Adding Monetary Value to Someone’s Life- A life insurance helps to pay off for the unavoidable financial consequences that are accompanied by the loss of life. Strategically a life insurance plan efficiently covers left behind the cost of final expenses, mortgage and outstanding debt, lost income and planned education. Life insurance is not just about adding monetary value to one's life; it’s also a way of providing peace of mind to the bereaved family of the insured.
3. Provides an Opportunity of Long-Term Saving- Apart from providing life protection, the major plus point of having a life insurance plan is that it helps you to save and build your own wealth. It is a systematic way to create a safety net for your finances so that you can fulfill the future financial goals like child education, marriage, retirement, etc. Therefore, many life insurance plans provide the dual benefit of protection and saving to the insured person.
4. Life Insurance can be Extremely Affordable- Buying a life insurance plan at the right age and in the right way can cost you really less. All you need to do is to make a proper use of the premium calculator. A premium calculator is the best way to find a policy with the lowest premium. The benefits of the premium calculator are manifold as it is a time-saving technique which helps you to compare various plans online so that you can choose the most cost-effective plan according to your own choice and suitability.
5. Provides Tax Benefit- Apart from working as a saving and protection plan another advantage of having a life insurance plan is that it offers tax benefit. Under life insurance policy the premium paid are tax exempted under Section 80C of Income Tax Act, 1961. Moreover, the maturity proceeds and claim received under life insurance policy are also tax deducted under Section 10(10D) of Income Tax Act, 1961.
Most often we avoid talking about life insurance as we don’t want to talk about our own death. But an honest and open discussion about planning for a sudden demise can surprisingly be a life savior. Even if you don’t consider that with the help of above discussion, it is loud and clear that a life insurance plan is still a vital part of comprehensive and long-term financial planning.
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