Life insurance is a contract between the policyholder and the insurance company, in which the company promises to pay a pre-determined amount in the event of the policyholder’s death or for a specified period, and in return, the insured payment. Fixed life insurance can help a person achieve his or her long-term goals and ensure the financial security of his or her loved ones in his or her absence. In the sections below, we will discuss all aspects of life insurance and help you decide why you need health insurance.
How does Life insurance work?
Such policies provide funds to the insurer or his or her family in the event of an accident to a person’s health, such as death, disability, accident, retirement, etc. The insurance company will provide you with life cover. Also, in addition to financial security, a person may obtain tax benefits under Section 10 (10D) and Section 80C of the Income Tax Act, 1961.
Why is Life insurance important?
Our lives are uncertain and full of dangers. In the unfortunate event when something happens to a person, the whole family suffers. And if that person is the only one eating bread, the grief is even worse.
Here is the role of health insurance. Although a person’s life cannot be measured, the amount of money that a person can earn can help him or her to survive without sacrificing their needs and wants.
Apart from this, life insurance plans are also an investment tool where you can get the benefits of maturity as long as you survive the policy period. This amount can help you reach the tops of your life like your daughter’s marriage, your child’s higher education etc. Along with protection, the health insurance system offers peace of mind.
Let’s understand the importance of health insurance for example.
Ashok and Monoj are childhood friends. Monoj decides to buy life insurance and suggests Ashok invest the same amount, but he refuses. Twenty years later, Monoj’s daughter wants to pursue higher education, while Ashok, on the other hand, plans to marry his eldest daughter. As Monoj has invested in now matured health insurance. She can use that amount of money to fulfill her daughter’s dreams. Although Ashok has to give up everything that saves his life to meet the cost of marriage. If Ashok had bought a life insurance policy before, he would have saved his money indefinitely.
What are the benefits of Life insurance?
Along with the health cover, the life insurance system also helps you achieve your financial goals. There are many benefits that life insurance offers to policyholders. Below are some of the benefits you can get by buying life cover. Let’s go over them:
Offers Financial Security to your loved ones in case of any uncertainty such as death or disability.
Secure Your Child’s Future
Secures the educational and various other needs of your child.
Provides financial independence in your post-retirement years.
Insurance With Savings
Enables you to build a corpus to meet your economic necessities at every stage of life.
Avail tax benefits against the premiums paid under Section 80C and 10(10D) of the Income Tax Act, 1961.
Avail loan against your life insurance plan to meet any unforeseen situation.
How can you choose the best Life insurance?
With so many health insurance plans available on the market, it is confusing to choose the best one among them. Keeping one thing in mind and ignoring another can lead to many problems in time. Therefore, it is very important to go through all the details before investing in health insurance.