Life Insurance: The Critical Financial Assurance for Your Family after Life
There isn’t anything more important than one’s life, not just to that individual for his own self but more so for those
who are dependent on the individual. For instance, if anything happens to anyone, their first thought goes out for their
loved one and even more, in case the individual is the sole or primary bread-earner for the family. In such a scenario, it
can become a living nightmare for the victim’s family as they not only suffer the emotional stress of losing their loved one
but also the anxiety of being financially bereft all of a sudden. Thus, in such a case, an adequate life insurance policy, taken
much in advance, can prove to be a real savior for the peaceful existence of the dependents as well as
the initial peace of mind of that individual who feels responsible for everyone else.
Life is a protection cover for ensuring the financial well-being of one’s family in the future, be it
while living or even after one’s not there anymore to provide for the family actively. With an adequate
life insurance policy, one can rest assured that the beneficiaries of the policy (whoever the insurer chooses)
will be provided the pre-specified amount upon the sad event of the person’s demise. Apart from this obvious one, there are other
advantages of having the best life insurance policy as well, which include:
- Better Financial Planning for Future- This one goes without saying that with life insurance cover,
one is moving in the right direction for a better and systematic financial planning for the future of
oneself as well as one’s dependent family members. It ensures a particular sum that one can bank upon as sufficient saving for any
big-small future requirements or for meeting any contingency situations.
- Exemption from Tax- Another additional benefit of life insurance policy is due exemption from tax, depending upon the amount
of premium one pays for the policy. Moreover,
on maturity of the amount as well, there are some policies which provide tax deduction on the maturity earning also.
- Can avail loan against policy- One can also utilize the policy for availing a loan against it,
during the time of need, in proportion to the amount for which the policy is taken. In such a case, the amount of loan can be
equal to either the cash value or the percentage of the sum insured.
- Facilitates better returns- Life insurance policy also provides for much better returns in comparison
to the other investment forms and also, makes for a relatively safer investment tool as the invested money is sure to the
returned either on tenure completion or after the death of the insured person.
- As an Investment Tool- Again, an extension point but important enough that life insurance acts as a great
multi-utility investment tool for future as it can provide better financial
assistance during major events of life such for children’s education of marriage for instance.
Thus, life insurance is certainly an important element to undertake in one’s active years so as to have a peaceful existence in future.