Do you love your family? A rather awkward question, Isn’t it. But if your answer is “yes” then the next obvious question to you would be how would you ensure the safety and happiness of your family? Surely you would like to do everything and anything to guarantee them safety, happiness and peace of mind. You would definitely work to build up your financial status, make provisions for future plans, aspirations and responsibilities, provide your children with the best possible education and other amenities and do whatever is possible for you.
But have you given a thought to the scenario when you are not present in the scheme of events or something unfortunate happens to you, you meet with a serious accident, diagnosed with a critical illness or fall prey to a permanent disability. Then would you be able to provide the same standard of living to your family? Quite clearly, your answer would be “no”.
In such circumstances, steps in the role of one of the most widely used risk coverage financial instrument (that would protect your family’s financial interests). And you might have already guessed it. Yes, you are absolutely right. It is none other than Life Insurance.
Life Insurance today has become a key and vital part of personal financial planning. Your portfolio is incomplete without the input of Life Insurance. It is a financial instrument that serves to provide you with savings and security. It covers risks such as death, critical illness, accident, permanent or partial disability and serves as an instrument for long term care as well.
You need to take a Life Insurance Plan in the form of a Life Insurance Policy from a Life Insurance Company. A life insurance can be taken for a definite sum of money which you reckon necessary to protect the financial interests of your family in case something unfortunate happens to you. You can take a single insurance policy or multiple life insurance policies.
There are different types of Life Insurance plans which you can opt for like Term Insurance, Whole Life Insurance, Endowment Plans, Pension Plans, Child Plans, Unit Linked Plans, etc. Each have specific and numerous benefits associated with them.
Today we list down to you Ten Reasons Why You Need Life Insurance so that you have a clear reasoning and vision as to what are the benefits of insurance and why you should have life insurance cover with you. The reasons listed here under are in a way the benefits and advantages you get by having a life insurance. Though, it is not at all necessary that you would find all of the benefits mentioned here in one particular insurance plan or insurance policy. You must first know the benefits and purpose of life insurance policy before purchasing one.
So, here we are with the Ten Reasons Why You Need Life Insurance:
1. Life Insurance provides Risk Cover: Life is always associated with uncertainties and risks. By having life insurance you ensure and protect the future well being of your family in case any unforeseen event happens with you. It provides financial support to your family in the event of your untimely death.
2. Life Insurance serves to fulfill various Life Stage needs: With life come responsibilities and aspirations. And Life Insurance serves as an effective source of long term investment to fulfill various life stage needs. It may be your children’s education, their marriage, a quality family life, building your dream home, for a happy retired life, etc. Life Insurance can be an effective medium to fulfill all of your aspirations and responsibilities.
3. Life Insurance as a medium for meeting rising health expenses: Life Insurance incorporates an integral and important element in the form of “Riders” by which you can cover up the health expenses if you are diagnosed of critical illness or require meeting hospitalization expenses. Riders can be attached to your life insurance policy at a little extra cost and effectively meet the various medical costs.
4. Life Insurance provides Assured Returns: Most of the Life Insurance Plans, other than Unit or Market Linked Plans provides an opportunity to get assured and guaranteed returns. Monetary benefits are prefixed in the event of death and as well as at the time of maturity of the insurance plan. So you exactly know how much risk you have covered from a particular life insurance policy that you have taken. It enables better financial planning for your future requirements.
5. Life Insurance can be easily liquidated: Life Insurance Policies can nowadays be easily liquidated or cashed so that you or your family has the money when they need it the most. The claim procedures have been automated and streamlined so as to give better customer satisfaction.
6. Life Insurance serves to build the habit of saving: As to continue a Insurance plan you mostly need to pay regular payments termed as “premium”. If you fail to pay the premium of your policy, the risk cover ceases to continue. So by default you have to pay the premium of your life insurance policy. This in turn serves to inculcate the habit of savings. Most of us do not like to save or nearly forget to save. Through Insurance you can learn to save for your future.
7. Life Insurance gives the facility of taking Loans: Some Life Insurance policies come with the facility to take loans against the policy. So you have dual benefit, on one side your life insurance continues and on the other side you can easily have the required amount against your very own policy. No need to take expensive Bank Loans.
8. Life Insurance offers Tax Benefits: Most of the Insurance plans offer attractive tax benefits both when you take up a life insurance policy and also when the monetary benefits are paid to you.
9. Life Insurance offers level payment structure: The premium amount for an insurance policy is fixed and does not change or go up with time no matter how old you get. So a life insurance has a level payment structure. You know your financial commitments beforehand and can plan for the payment of premiums as part of your regular budget.
10. Life Insurance gives Peace of Mind: And finally, Life Insurance gives you a sense of security and complete peace of mind. You know that you are saving for your future and that your family is protected from any unforeseen and unfortunate event and also from uncertainties of life.
Thus we see that there are numerous benefits of having Life Insurance. The reasons highlighted above clearly bring forth the importance of life Insurance to us. Life Insurance effectively serves to reduce the risks associated with our lives. As explained above, the Ten Reasons Why You Need Life Insurance can be a guiding source for you to know that having life insurance is important and necessary for yourself and as well as to protect the future of your family.