Benefits of Life insurance policy

Buying a life insurance policy is crucial for families to feel a sense of security and confidence to continue their lives each day without losing their stability. There are several benefits associated with the life insurance policy. We have covered the most important ones:

Act as risk cover: Uncertainties can never be predicted and may create problems for an individual and his or her family at any moment of life. If you have a life insurance policy, it will ensure your family and dependents continue to enjoy a quality lifestyle in case of accidental or unforeseen death.

Can get a comprehensive plan for different stages of life: Life insurance policy is not only known for offering policyholder’s unforeseen and accidental death but also serves as a long term investment in the sense that it encourages you to lay down objectives of buying the same. Whether the reason for buying is the education of your children, their marriage, constructing the home of your dreams, or even planning for a peaceful retired life. The planning will be done based on your risk appetite and life stage.

Cover for increasing health expenses: Whether it is a stand-alone insurance policy or through riders, all life insurance providers offer financial cover against hospitalization expenses and critical illness. Since health expenses are increasing constantly, the need for health insurance policies has increased too, as it ensures that the policyholder will have minimal medical costs to deal with.

Help in making long term savings: Life insurance policies come with a long-term agreement wherein the policyholder is required to make a fixed periodical payment. It helps the policyholder to inculcate the habit of making savings. If you are saving money on a regular basis, it will help you in building a good corpus which in turn helps in meeting your financial requirement at different stages of life.

Profitable and Secure Long-term investment:  The Insurance Regulatory and development authority of India made implementations of several regulations through which the money of the policyholder is ensured to be safe with the stakeholders. It means all money you have invested in your life insurance policy is the responsibility of the insurance company through which you avail of your policy. Life insurance is a long-term saving product, ensures that the policyholder focuses on long-term returns rather than focusing on risky investment decisions that could provide short-term profits.

100% Guaranteed income through annuities: When you are planning for retirement, you must consider a few instruments as effective as life insurance policies.  It helps you in providing a steady source of income for living yours after retirement life.

Growth via dividends: When a customer goes for conventional life insurance policies, it provides customers an opportunity to take part in economic growth while taking no investment risk whatsoever. While the policyholder split the investment income through yearly announcements of bonuses or dividends, the policyholder will earn maturity benefits in addition to contributing to economic growth.

Loan against Life insurance policy: Individuals also get the choice of availing a loan against their insurance policy, which could help them meet their unplanned life stage requirements without hampering the benefits provided by the policy they have purchased.

Redemption of Mortgage: Life insurance policies serve as the best possible tool for the coverage of loans and mortgages applied by the policyholder. Due to any unforeseen situation if the policyholder is not able to repay his / her loan or mortgage, then the bereaved family members will not have to bear the burden of repayment and can make use of the life insurance policy.

Tax Benefits: Life insurance policies come with attractive tax benefits and help you save a significant amount of money which would otherwise be spent on taxes.

To conclude…

Life Insurance is the best risk minimization and protection tool to help the insured and their dependents in multiple ways while dealing with a variety of life events.