The advantages of life insurance policy are discussed here in this article. Life never comes with a guarantee. Some are fortunate enough to enjoy it completely while others never get a hint before it ends. In such a scenario, it’s not only the person who is dead has the loss, the family left behind also suffers in terms of Loans, EMI’s, child expenses, rent etc. It is very important to plan priory in case such a mishap happens. Here comes the role of life insurance.
Life insurance is totally beneficial and serves as a financial support in those cases where the income of the family is stopped. It helps by providing a compensation for the loss by returning a certain amount with the interest according to the insurance taken. The person mentioned in the Insurance gets the money by the insurer, in case of death as a compensation and financial support for the family.
What are the advantages of life insurance policy?
Life insurance as the name itself suggests is something that insures your life with a financial support when needed the most. It not only supports when in case of any sudden emergency but also helps for long -term planning including the ones for a better and comfortable future. Some advantages of life insurance are –
1. Insurance Completion benefits
When the time of paying the insurance is completed and you have completely paid all the installments then you can get the amount returned with interests after the completion of the insurance duration. The money insured is returned at the point of demise or the completion of the term, so in any case, there is no loss and it proves to be a good deal.
2. Death Benefits
In case of sudden deaths, the life insurance provides a great financial support in the form of the amount that has been invested plus the bonus money to the person mentioned in the insurance. This way, the sudden death which is already a big loss for the family, will not land the family under debts. This also proves to be a great help till the time the family copes with the financial stability.
3. Life Risk Insured
Life insurance is a great cover to any life risk. It helps the effected and their family in case of any sudden unfortunate happening. In case of any sudden mishap, the insurance can be claimed by the person at that time to meet the expenses which will include the installments that have been given without any missing and the extra bonus amount.
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4. Loan benefits
Life insurance lets you to take policy loans at the time of urgent need of money. These loans can be trusted at the time of urgency as a source of help and they act as a life saviour at such times, but the amount of the loan totally depends on the policy. Every loan depends on the policy taken and is varied in terms of returns according to the money paid.
5. Tax benefits
According to the Section 80C , of the Income Tax Act lets the salary earners to get a deduction in the tax liability. At present, 1,00,000 amount is available for spending on Life Insurance and other provisions such as Mutual Funds, Provident Funds etc. So, the amount that is invested in these things are subject to be repaid by reduction on the gross taxable income. This way it is a great save in terms of the money invested.
6. Guaranteed Income Benefits
In case the earning member of the family is no more there, the life insurance will provide assured income at proper intervals for the family to meet all the needs such as rents, child expense, medical expense, and other bills etc. They have proper durations for the payment of the money and it comes at fixed durations so the family can spend accordingly. This will be a great help for the family by giving them time to look for an alternate income.
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7. Future Planning Benefits
Life insurance gives you an opportunity to clearly plan all your financial stages as per requirement. It is not only helpful at the time of demise, rather it can also act as a long term investment that can benefit you for your child’s higher education or marriage or, even buying your dream car or house. You can decide a duration of the insurance and by that time the amount you paid will be ready with the interest amount for your decided future plan to invest on.
8. Different insurance plans according to purpose
Insurance plans can be chosen according to the purpose needed. There are insurance that is for retired people, some that helps the people with advancing age, people requiring health insurance etc. So, it is very flexible for the people to choose a plan according to their comfort as per their specific needs.
9. Flexibility of the Policy
The insurance policies are completely flexible according to the need of the Insurance taker, they can easily reduce, increase and sometimes even skip the premiums. One of the biggest advantage of life insurance policy is that one can decrease the death benefit at any time. This way the policy can be manipulated according to need whenever needed.
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Riders are the additional bonuses or advantages of life insurance policy that you can buy along with the usual insurance policy of yours. It generally is added to increase your insurance coverage. The life insurance policy also covers the risks that are not covered by the basic insurance policy such as any personal accident, critical disease etc. It is also applicable for the deduction of the taxes under Section 80C.
Life insurance is surely a no loss deal which comes with atmost benefits in terms of minimization of risk and complete protection in case of sudden demise of any individual. Life can never be planned completely and same in case of death, but atleast planning an insurance beforehand can save the family from being helpless at such a time. A life insurance can secure the family, in case of a sudden demise atleast till the time they find another source of income.