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Unique Features and Benefits of Life Insurance Policy

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Life insurance policy is an important weapon that you can have in your arsenal for your financial security. Life insurance is a type of policy that is offered to customers by the insurance service providers. The purpose of life insurance is to help you in creating a financial security for yourself. It also acts as a financial cushion for your family in case of your unfortunate demise. It also offers you an opportunity to invest while taking care of your investment needs to ease your retirement life. 

Here are some of the reasons why Life Insurance is a better option for you: 

  1. Financial security: The way life insurance works will provide you with an opportunity to secure your financial interests for the future and will help you provide financial support to your family so that their goals and interests stay protected. 
  2. Secure your child’s future: In this competitive day and age, it is imperative that your child’s future needs and academic needs are secured. A good educational background can help the child in having a better future with respect to a career. 
  3. Preventing loan burden: A life insurance is an asset that can be used wisely. It can help you repay the loans that you have borrowed without risking the financial stability of your family. You also do not need to pledge your assets or stress about arranging the funds as a life insurance policy will help you do the same. 
  4. Planning for your retirement: Multiple life insurance policy options are available to you from the insurance service providers in the market. You need to choose the type of policy that suits your needs the best. For example: there are certain annuity based plans that provide monthly pensions on maturity. These plans can help you secure your retirement and help you live in peace. 
  5. Tax benefits: Life insurance also gives you the advantage to obtain tax benefits. Under section 80C of the Income Tax Act, 1961, you will have an opportunity to claim a deduction up to Rs. 1.5 lakhs in a financial year. Apart from this, several maturity plans are also tax-free. They provide you with a tax benefit under section 10(10D) of the Income Tax Act, 1961. 
  6. Benefit of starting out young: If you are someone in your 20s, you can avail more benefits out of the life insurance policies as you will be paying a lesser premium during the same period. However, if you are someone in your 40s, your yearly premium will be much higher if you purchase the same policy as a 20-year-old. 
  7. Death benefit: This is an option that almost all life insurance policyholders can make use of. The life insurance policies offer the nominees an opportunity to claim the maturity amount or even have an option to not pay the remainder of the premium in certain cases. The sum received by the nominee or the beneficiary can be utilised for a plethora of reasons. 

If you are someone who is wanting to purchase a life insurance policy, you can weigh the pros and cons and then determine the best policy that suits your needs.