Many times, many people don’t subscribe to a universal life insurance plan thinking it’s not a need. However, accidents and life is unpredictable and not being prepared for the worst can keep your life and others associated with you in jeopardy.
When you don’t avail a life insurance savings plan and pass away in an accident, the liability of your EMIs, loans and more comes on your dependents. They need to manage your repayments other than grief stuck. We never assume the worst situations and that’s why don’t feel the need of having a life insurance.
However, it is a must to get life insurance plans and take a sigh of relief as the insurance company can take care of all paying a lump sum amount as compensation. What’s more, availing a life insurance also offers you many tax benefits to help save taxes.
Life insurance advantages at a glance
Life risk cover –
Source : irishtimes.com
A life insurance scheme comes with a risk coverage of a higher amount. It can help to keep you and your family protected during the event of an unfortunate event.
Death benefits –
Source : thebluediamondgallery.com
In case if anything happens to the policyholder in which he/she loses his/her life, investing in a life insurance can come in handy. During such times, the insurance company offers the bereaved family or the nominee with the entire assured sum along with the bonus. Life insurance policies are also good for people with lowering incomes with advancing age, people meeting with accidents or for retirees. There are many life insurance policies available online which one can compare and buy as per the needs and affordability.
Source : nexthealthnow.com
Compared to other investment schemes, most of the life insurance plans offer a bonus that none has the provision. The money that you put in a life insurance plan is safe and covers all risks and hence, the invested money fetches a good return. It is also given back either after the end of the term or after the death of the insured. The money receives a good return on investment (ROI) in both cases.
Tax benefits –
Source : housing.com
One of the major benefits of the life insurance scheme is helping you save tax. Yes, as per the clauses of the Section 80C of the Income Tax Act, it helps salaried professional to reduce the tax liability. The available amount for rebate under the Section 80C is Rs.1 lakh. You can invest the amount in life insurance premiums, employee provident fund, equity-based mutual fund schemes, National Savings Certificate and PPF (Max Rs.70,000)
Loan benefits –
Source : abtakmedia.com
The subscription to a life insurance policy also can help you availing a policy loan in case if you need some money desperately. The loan amount that you can avail depends on your service provider and other conditions.
The Bottom Line
Source : jwbmanufacturing.com
Why let your family suffer in case if you meet an unfortunate event? It is always better to be sure that someone will be there to financially help your family after you than leaving the world without peace!
Now that you are aware of the many life insurance savings plan advantages, why not compare best plans online and pick one quick?
If you are confused when it comes to availing a plan that’s best for you, you can always get in touch with a known financial expert to bail you out. Always remember that having a life insurance pays you back especially in distress and it is a must to have!