A Hi-FIVE to buy life Insurance
You may have the finest of investment strategies in your pockets, evenly balanced risks pools and gaining high returns through mutual funds, recurring deposits, shares and debentures, gold and silver and much more, but your investment basket remains incomplete without the fruitful policy of life insurance policy. Yes, life insurance is that tree of life which when planted well in advance gradually grows to produce those sweet fruits of incomes for you and your family once it gets matured. It has become one of the very essential components of life.
Today, life is unpredictable, you may never know when uncertainties event could the rip the breath out of your life. If you’re the sole earning member of your family then things might turn bad to worse for them such as not only they get orphan social but also financially. It is therefore important that you should buy life insurance. Sometimes just sit and calculate the amount your family loses as a source of continuous income if anything happens to you. You will then realize the importance life insurance policy in true sense. Even if you are single, you must plan for your dependent beneficiaries who may bear the brunt of pending expenses you leave behind for them.
- 1) Your insurance policy will make sure that the sum assured given to your family replaces the stream of monthly income so that they can live a comfortable life. The Sum Assured will obviously depend on the life insurance scheme you choose and the levels of premium you pay.
- 2) Secondly, these schemes in India offer the second benefit in the role of saving tax deductions on premium payments under Section 80C of the Income Tax Act, tax rebates and tax benefits in cases of claims made and maturity amounts received under 10(10)(d) of the Income Tax Act. Amongst the many instruments of investment that you may have divided your portfolio in, why not choose life insurance policy to kill two birds with one stone – gain tax benefits and avail financial security.
- 3) Life is often a process of continuous effort for development and procuring a good healthy lifestyle. Often many things are left incomplete when you suddenly perish from the world. These might be loans, home mortgage or a personal debt costs, may be you’re part of a family business or a sole proprietorship with unlimited liability. It is this time when you feel the need of this bridge of insurance to cross over the pool of payments of these liabilities and lead a happy and relaxed life ahead. It is also critical if you have just started your life as a married couple.
- 4) Growing old is by default but living old is definitely your fault. You can use insurance to make sure your retirement savings lasts as long as you do and live your dreams to the fullest during the olden days of your life. An annuity is like a do-it-yourself pension plan, you put an amount of money into insurance product and in return you get a guaranteed stream of income month after month, for as long as you live.
- 5) Many people also use insurance to fulfill two purposes. Firstly, to gain the traditional benefits of taking care of financial needs of the family after they are gone. Secondly, to use insurance as an instrument for making investments. Depending on the scheme of insurance you select, you can opt to invest a part of your funds from insurance in a variety of funds. In some cases, loans can also be drawn loans against your insurance. Specific term assurance schemes can also be taken to pay fixed amounts of premiums through a certain period.
Many people today perceive insurance as a long term investment instruments. But as the saying goes “Sow today to reap the benefits tomorrow”. Life insurance policy is a most precious gift to your family which will make them feel your presence even when you’re not there in the world around.