Why should you opt for suitable life insurance plan?
Although, life insurance policy isn’t all that much fun to buy, much less talk about, it’s still a critical part of your financial plans. A life cover is a contract between you and the insurance company. You agree to pay certain amount towards the premium of the policy and the insurer will pay a dedicated sum amount to the beneficiary in case of any mishaps or the completion of tenure. As long as you pay premium, the company will be there to pay the benefit to the beneficiaries if you pass away.
Insurance is something many people dread to buy; it is quite natural that you just skip the whole concept at times. They can be daunting since it can get extraordinarily complicated in a hurry. But not taking suitable life insurance policy cover may create the situation for your family all the more worse. It can leave your family, spouse or other dependents facing enormous bills and financial obligations with little or reduced income.
life insurance policy can be an important asset to have, at any point of time in life. If you have a family, it will be the most helpful resource for their survival, in your absence. And for retirees, it can benefit surviving family members; clear the existing debt, beat the inflation costs, and develops a fund for daily survival. If you’re planning to support your children’s education expenses in the future, insurance can allow your spouse to still achieve the goal if something were to happen to you.
The best way to reap benefits of an insurance policy would be at a younger age. In younger age, the premium is less, so it’s a good deal to buy higher cover at fair low cost. This way it will save you substantially compared to taking out life insurance policy when you're older and have dependents.
There are lots of insurance policies in the market and agents who lure you to get large cover of life cover showing bigger picture of health, wealth & danger, but it might only end up paying extra money for it, So, it’s better you get just enough insurance cover so as to assure the replacement of your present income. You can also consider getting advice from a financial planner, who can help you arrive at the exact amount of insurance required.
Life cover comes in different sizes and boasts about different features, prices, and terms. If you need an insurance, make sure you understand how to make a right choice, because you don’t want to end up paying more or get stuck with inadequate coverage. So, choose a policy that is more likely to fulfill all the financial needs of your loved ones to lead the same lifestyle living currently even in your absence.
Does some online research to compare various life insurance policy cover packages and narrow down your options. This way you’ll be able to gather as much information and as many quotes, you need for shortlisting the best coverage policy, without having to listen to the broker’s boring sales pitch.
Also, people who hesitate to buy an insurance should realize that there are many insurance schemes in India which offer tax benefits on premium payments under Section 80C of the Income Tax Act, tax rebates and tax benefits in cases of claims made and maturity amounts received under 10(10)(d) of the Income Tax Act. So, buy taking an insurance policy would be like killing two birds with one stone – gain tax benefits and avail financial security.
