Here’s why you should invest in a life insurance plan

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If you think of life insurance premiums as an extra expense you’re hesitant to incur each month, it’s time to think again.

We live in a time when inflation is rising faster than our incomes. All the more reason to hesitate to invest in an insurance premium. But take a moment to do some introspection. If all your expenses increase every day, what if something happens to you? Life is uncertain. One moment we are safe, another we are not.

Who would pay all these expenses which increase day by day if it is not you? The best life insurance plan might not be able to save you from such uncertainties, but can protect your family from the financial burden of death and inflation.

That said, we’re going to give you all the reasons why you should invest in a life insurance plan sooner rather than later if you haven’t already.

Provides your family with financial coverage and reduces their stress

Money is a necessity. We need it not only to survive but to live a comfortable life. Your family members must have it even after you.

Financial stress is the last thing your family would need if something happened to you. Grieving can be heavy, but it can get worse when you are not financially secure. Life insurance can provide them with financial security to not only allow your family to grieve in peace, but also to get on with life when the time comes.

Helps with your family’s long-term goals

Whether it’s going to college abroad or starting a business, everyone has a dream. You must have dreams for your children, or they have their own dreams. Nevertheless, these dreams can come to a halt if there is a lack of financial security after you leave.

Life must go on, and so must dreams and long-term goals. Life insurance can not only provide basic financial coverage, but also additional funds to support your family’s long-term dreams and goals.

You can have a stress-free retirement

Once you retire, you stop working and therefore your income stops.

All the more reason why retirement can be both a long-awaited phase and a daunting phase for most people. If you are financially secure for your retirement, you are good to go. But in case you’re not, that’s cause for concern.

Surprisingly, life insurance premiums can also protect you from the financial crisis of retirement. Insurance premiums are a returnable investment if you survive the term. In other words, if you survive the temporary plan you took advantage of, you can collect your premium and use it as a retirement fund.

It’s affordable. You can choose the plan that best suits your budget

Insurance premiums don’t have to be an amount you can’t afford. You can always choose plans that suit your budget. Every life insurance company offers packages to suit your budget. You can choose from a list of plans from a company to find the one that best suits your needs.

Life insurance premiums are cheaper today than they will be tomorrow

Inflation has never stagnated and never will, that’s for sure. The prices of all commodities will increase in the near future, including your life insurance premium. If you opt for insurance premiums today, you will get them cheaper.

Plus, if you get the best life insurance policy while you’re still young, you can save more. Insurance premiums are somewhat cheaper for young adults than for middle-aged or elderly people.

You can save on taxes

Insurance premiums come with tax benefits. They are tax deductible from your taxable income. For example, if you pay INR 5,000 as monthly insurance premium, your annual premium would be 60,000.

Suppose your income is 6 Lakh LPA.

Then your taxable income would be, INR 6,00,000-60,000 = 5,40,000

In other words, your income tax would be calculated on INR 5,40,000, not 6,00,000.

It’s one less problem you have to worry about

Do you worry about what will happen to your family if something tragic happens to you? But that’s not it, as an adult you would have additional issues to worry about. However, knowing that you have life insurance to protect your family financially in the event of an untimely death can save you the stress. Therefore, having a life insurance policy would mean one less problem for you and more peace of mind.

A word of warning

Whichever life insurance policy you choose, make sure you know your rights and responsibilities as the purchaser of the policy. You cannot invest in a company that is unreliable or that breaks the promises it makes. Do your research well.

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