7 Reasons to buy life Insurance policy In India

7 Reasons to buy life Insurance policy In India

There are many reasons to buy a life insurance policy in India, but question is “do we really buy an insurance policy or it is being sold to us?” Very first instance of insurance in Indian scenario come in light when someone become an IRDA (Insurance regulatory and development authority)LIC agent and he starts developing his selling skills from families and friends. Human life is vulnerable to risks, Risk of death, risk of disability, risk of accident, risk of financial stability and much more.To protect against these risk we used to have health insurance for health issues, Asset insurance to protect asset and life insurance to protect unpredictable event in life. Do we still thinking reasons to buy a life insurance policy in India? Now we will discuss in details the reasons to buy a life insurance policy in India.

7 Reasons to buy life Insurance policy In India

           1.Tax Benefits: the most luring thing in India is the idea of saving taxes and tax free returns out of life insurance plan. Yes it’s for you. Premium paid to buy an term insurance is exempted from tax under section 80C of income tax act 1961 and proceeds of insurance (Death benefits) are exempted from taxes under section 10D of income tax act 1961. Pay premiums of insurance and save your hard earned money.

       2.Looking after your family: Life Insurance cover should be considered as risk mitigating product rather than an investment product. It is important aspect or goal of your life to protect your family financially when you are no more. Let life insurance generate the income that you were doing earlier. Your family need not to switch life style due to lack of income.

3    3. Child’s education and payment of Debt: Buy insurance in way that takes care of your child’s education in future. Your family should not be on road after your death. Let insurance to take care of all your debt in future. It will not only provide peace of mind to you but your family when you are no more.

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4    4. Long term investment goals:  Since it keeps you invested for long term, it full fill your long terms financial goals like child’s marriage, child education, buying a home, buying a car, creating an additional asset. You need not be worried about future source of fund to create asset.

    
     5. To full fill your retirement goals: who would not like that he continues to get monthly income even after retirement. Some life insurance policies provide retirement plans to supplement your income even after retirement.

     6.Buy it when you are young: Insurance should be taken as early as possible because it is cheaper when you are younger. If you have dependent family members, if you have signed loans along with your parents or partners, it has become must for you to be insured.

    7.PEACE OF MIND: Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you've done all you can to help them tide over difficult times.

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Final words: Since death is unavoidable and future is unpredictable hence insurance is only mitigating task that you can undertake. Consult your financial adviser, fix your future goals, assess your premium paying capacity, assess your long term debt and repayments and then undertake suitable product for you. Do not let insurance to be sold to you, go and buy it. Consider insurance as protection plan, not as investment plan and come out of typical Indian mentality “Badle me Kya Milega”

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