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India News

Importance of Life Insurance: 5 Reasons to Buy a Suitable Plan

Covai Post Network



Over the past few months, the unpredictability of life has made itself more evident. The global pandemic has made us acknowledge the importance of protecting our loved ones. A reliable way to ensure that they are secure even in the face of a crisis is to invest in life insurance.

If you are earning and have financial dependents, it is crucial to plan your expenses and savings. It helps you invest your income in the right place at the right time. Life insurance in India is one of the most popular financial instruments that offer protection against unforeseen circumstances. You cannot put a price on life, but you can ensure that your family members will not be burdened with expenses in your absence.

There are several reasons to purchase a life insurance policy in India. For any hard- working individual, it is essential that their income is utilized efficiently. Life insurance policies help you achieve that without causing a strain on your finances. Let's look at some of the reasons to purchase a suitable life insurance plan.

1. Premium Rates

An attractive feature of a life insurance policy is that they allow policyholders to secure coverage at affordable rates. Premiums are the predetermined amount that the insured individual pays to the insurer to keep their plan active. Different types of life insurance policy have varying premium rates depending on several factors.

The duration of your life insurance plan, the sum assured, premium payment frequency, and other such factors considerably impact the premium rates. If you want to choose from one of the affordable types of life insurance in India, choose term insurance, which offers coverage for an extended period at low rates.

2. Multiple Benefits

There are different types of life insurance policies available in the market today. Insurance providers recognize that each individual has varying requirements from their plan. For example, some people may look for investment opportunities along with life cover, while for some, retirement planning may be the primary motive.

Insurance providers offer a variety of life insurance plans that satisfy such diverse needs. You can make the decision based on the nature of your income source, lifestyle, and long-term family requirements.

3. Tax Benefits

Each of us wishes to maximize our savings from income. Multiple things in life can cause a strain on your pocket. It is of utmost importance that something as essential as life insurance is not among them. The primary purpose of life insurance is to provide support in difficult times. If you are struggling to keep up with the cost of life insurance in the first place, it defeats the purpose of it.

Hence, the government of India allows certain tax benefits on investments towards life insurance policies. It helps relieve the policyholder of their tax liability significantly. For example, any premiums payable towards life insurance are eligible for a tax deduction of up to Rs. 1.5 lakhs as per Section 80C of the Income Tax Act,1961. Furthermore, there are tax benefits on the claim settlement and maturity
amount as well.

4. Riders

While most people are familiar with a life insurance policy's primary benefits, not all are aware of the life insurance riders. Riders are add-ons to the existing life insurance policy that enhance the coverage to a great extent. They enable policyholders to avail of additional benefits without investing in a standalone policy, which may cost more.

For example, Max Life Insurance offers a critical illness rider with their term insurance policies. It provides protection against a list of life-threatening diseases such as cancer, heart attack, kidney failure, major surgeries, and many more. It helps the policyholder to get health benefits along with life coverage. Since the costs of medical treatment are rapidly rising, such a rider can be immensely valuable.

5. Peace of Mind

It is rightly said that without your peace of mind, everything else seems futile. A life insurance policy aims to take all your worries away regarding future expenses. If you carefully devise a financial plan, you can make the most of it by investing at the right
time in the right policy. There is nothing more significant than gifting the promise of support to your loved ones for when they need it the most. When you purchase a suitable life insurance plan, you can rest assured that they will never have to compromise on their life goals.

Make a Wise Decision For Your Future

Your family deserves a future where they can live peacefully and reach their aspirations. As someone responsible for their well-being, it is crucial to evaluate the long-term goals to find a suitable life insurance plan. While doing so, it is essential to choose a dependable insurance provider such as Max Life Insurance. When it comes to the security and happiness of your loved ones, there should be no room for mistakes. Be sure to carefully review the benefits that the insurer offers with your life insurance plan before investing.

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