The young generation thinks that life insurance is a matter of discussion for old people. But the harsh truth is far away from the conventional believes. Future is unpredictable and no one can predict what is there in the box in the coming path of life. So, life insurance is the most crucial financial decision which determines life and death for you as well as the monetary security of your family after you. Here we have enlisted 5 vital reasons to buy a life insurance
1 To Secure finances of your family after you are gone: Starting from children’s education to continuing the standard of life, your family will need money even after you are gone and you will never want them to struggle. In an era of House EMIs, car EMIs and credit cards, it becomes more important to choose the correct life insurance which can take care of all these for your family.
2 Achieving Long Term Goals and Securing Life after Retirement: The very first expenditure of your income should be ‘Savings’. It fuels your dreams and desires to realize in the future which is unachievable with your current financial condition. A home of your own, buying a car or setting up a side business, these financial goals need huge accumulated money. So life insurance with investment-linked policies becomes a systematic safe and easy to go path to get a desirable lump sum amount of money.
Another perspective of life insurance is to get a monthly fixed amount of money after retirement. Spending bucks in an annuity can work as an alternative for pension plan. It ensures a continuous flow of income at the end of each month after you get retired.
3 Tax Benefits and Advantages in Business: Tax benefits are the most lucrative thing about life insurance which attracts most of the people in our county A tax benefit up to 1.5 Lac rupees is eligible on the premium of an insurance policy There is also a benefit of tax-free proceeds on death/maturity.
Life insurance is not meant only for you and your family; it also provides security to your business. If you are a businessman, then your business partner gets the power to purchase your stake in the business without any difficulty. Your business partner will enter a buy-sell agreement and the payout would go to the dead partner’s nominee but without sacrificing stake in the company.
4 Uncertainties of Ineligibilities in Future: Young, healthy, fit and possessing genes from healthy ancestors increases your insurability to its apex and you will also get the best price for your life insurance policies. Moreover, life insurance companies’ policies are very much uncertain and unpredictable.
One day if you suddenly become sick, you may lose the eligibility to buy an insurance policy. This becomes another reason to buy one when you are young and healthy.
5 Peace of Mind: When someone ensures the financial future of the family, keeping them ready for the worst case scenario and stopping to worry about the future, he enjoys the peace of mind with life itself. Life insurance gives you the satisfaction of doing whatever you want without having to worry about anything.
So, it is always advisable to have a Life insurance policy to avoid any kind of regrets in the future. It secures your loved ones and allows them to live the life they want to.