Why life insurance is necesarry

1. Why is Life Insurance Necessary?

2. What is Life Insurance? • Human life is subjected to risk of death or disability. It can occur due to natural and accidental causes. • To cover such contingencies, life insurance policies have come into being. • A life insurance company promises to pay a sum assured to your family in case of your death or disability. • If the life insurance plan that you have opted for has a saving component, then you can avail this benefit on death or on maturity along with the bonuses (if any).

3. Who Needs Life Insurance? • Usually, people who are the breadwinners of the family need to buy life insurance. • Life insurance can also be bought for children to secure their educational and financial needs in case of your untimely death.

4. How Much Life Insurance is Needed? • The coverage that you need for your life insurance policy depends on the following factors: • Number of dependents • The kind of lifestyle you need to provide to your family • Planning for your child’s future i.e. education and marriage • Your future financial needs • The amount of premium you can afford to pay

5. Reasons You Need to Buy Life Insurance • Helps you ward off your financial liabilities: • On your death, life insurance policy helps your family take care of all your financial liabilities. • It pays your home loan, personal loan and even loan on credit cards. • Supplements your retirement goals: • A life insurance plan ensures you have a steady income flow even after your retirement. • Annuity plans provide you pension on a regularbasis to ensure that you don’t have to be dependent on anyone even in your last days.

6. Helps you save tax: • Buying a life insurance policy helps you save tax under section 80C and 10 (D) of the Income Tax Act. • Secures your family’s financial future: • A life insurance plan provides the much needed financial security to your dependents in case of your death. • It replaces your family’s lost income source by paying a sum assured at one go or on an annual or monthly basis.

7. You get the benefit of investment along with insurance cover: • Life insurance plans such as ULIP and endowment help you save money while also providing you with life cover. • In such plans, a part of your premium is invested wherein you can reap great returns. • The remaining part of the premium is used for providing you with protection.

8. Conclusion • Life insurance policies are of various types and you can always choose the one depending on your budget and requirement. Apart from offering the above benefits, having a life insurance policy ensures peace of mind as you know it will protect your family in stressful times. • So, buy a life insurance policy if you haven’t bought one already!