Life Insurance – What are the Reasons for Getting Such Policy
There are many financial investment plans but you have to keep in mind that such life insurance can be a very important plan. You must know of a myth among people that if they get older, it is the time that they must get a policy but this is really wrong. The bank deposits as well as other savings plans are among the investment options but that life insurance would really top all of this. Other than a way of funding for your future financial goals, this can surely give you the security that you want for your loved ones when the need arises. There are certainly a lot of reasons why you need to have such policy now.
You will need life insurance policy for security. This is really the first as well as very important thing which can provide your family when the insured would die. There is no person who can predict the future and there are a lot of cases of premature death yearly. It is certainly your responsibility and also your duty to ensure that your loved ones would stay secured even when you are no longer around. Those insurance plans can give such security in many areas like the expenses for the children, being a substitute for your income that has been lost because of your absence.
Such life insurance can offer you help to accomplish your future goals. When you plan on a goal, then you need to compute the amount of money that you would need in order to fulfill that goal. The insurance policy can provide an assurance in funding in those unexpected situations.
Life insurance is really important for your retirement goals. Such life insurance can ensure that in every month, there is a regular flow of income. If you are going to invest in the plan often, then a fixed income even after your retirement is certainly assured. No one is able to guarantee that one will have a longer life working since there are many issues and threats like illness or the burn-out rate of the company which can happen to any person. The retirement period may be long as long as the person’s working period. This is the reason why it is quite important that you compile a bulk in such working period so that the retirement period may be enjoyed in the right manner. Spending on that annuity can surely help achieve such.
The tax benefit is also another advantage. You can obtain many tax benefits through purchasing the insurance policy like the maturity benefits which are tax free under Section 10 and that paid premium may be deducted when tax is calculated under the 1961 Income Tax Act.