When we start earning money, we invest our savings in mutual funds, fixed deposits, equities etc. However, many of us hesitate to buy an appropriate life insurance policy and keep postponing it. We need to realise that life insurance is the only tool which can help your immediate family in bad times and take care of their needs if something happens to you. We list the top 4 reasons why you need life insurance.
Fulfil your family’s monetary needs:
If you are the sole breadwinner in the house, then it is crucial for you to be insured. If anything happens to you, there won’t be any source of income for your loved ones making it tough for them to fulfil even their basic requirements such as food and education. Taking life insurance will ensure your loved ones have adequate funds to survive.
Repay debts and clear other payments:
You have taken a home loan to buy your dream house or borrowed funds from a friend/colleague to begin your venture. In such cases, it becomes difficult for your partner or family to repay the money. Money obtained from your life insurance policy can help in clearing off these debts and take the burden off your family.
Tax deduction on premium:
Life insurance not only offers financial protection but also acts as a useful tax saving tool. As per Section 80C of the Income Tax Act, premiums paid yearly for life insurance are entitled for tax benefits.
Enables you to Sleep Peacefully:
Money can’t compensate the passing away of a loved one. However, once you have an effective life insurance policy in place, you are at peace because you know that if anything happens to you, your family can live comfortably without depending on anyone.
Fulfil your family’s monetary needs:
If you are the sole breadwinner in the house, then it is crucial for you to be insured. If anything happens to you, there won’t be any source of income for your loved ones making it tough for them to fulfil even their basic requirements such as food and education. Taking life insurance will ensure your loved ones have adequate funds to survive.
Repay debts and clear other payments:
You have taken a home loan to buy your dream house or borrowed funds from a friend/colleague to begin your venture. In such cases, it becomes difficult for your partner or family to repay the money. Money obtained from your life insurance policy can help in clearing off these debts and take the burden off your family.
Tax deduction on premium:
Life insurance not only offers financial protection but also acts as a useful tax saving tool. As per Section 80C of the Income Tax Act, premiums paid yearly for life insurance are entitled for tax benefits.
Enables you to Sleep Peacefully:
Money can’t compensate the passing away of a loved one. However, once you have an effective life insurance policy in place, you are at peace because you know that if anything happens to you, your family can live comfortably without depending on anyone.
Nobody lives for infinite years, death is certain. But no one knows when it will strike a person. Hence, it is always better to be prepared and plan in advance so that your loved ones don’t have to go through any financial turmoil. If you don’t have a life insurance policy yet, buy one right away. Premiums are low if you start young.
