Here’s Why You Need A Robust Life Insurance Plan

Have you ever bought life insurance? If no, then you need to educate yourself about the process because knowing everything from a life insurance policy to the buying process will help ensure that you are not underinsured. 

Life insurance is a policy you need in your life so that it can pay for you when you are gone. It helps your family sail through the financial turmoil after your unfortunate departure from life and enables them to fulfill their financial goals as if you were still around to provide for them. Despite its importance, many see term insurance as a luxury and not a priority. 

You need to understand that safeguarding your family’s future is a must, especially if you are the sole breadwinner of the family. With the help of life insurance, you can keep your family afloat during the financial crisis and protect them with an insurance cover that will take care of all their needs. 

Therefore, it is crucial to read the life insurance policy details to ensure that you are indeed investing in a robust plan. This article will tell you why. 

1. Safeguard Your Family’ Financial Security

With proper term insurance cover, you not only protect yourself but also your families in case of an unfortunate happening. The insurance provider will release the sum assured as specified b your contract along with the applicable bonuses. This is known as the death benefit according to the life insurance policy. The death benefit can be used by your family in several ways to attain their financial goals, to help them pay for your child’s education, your daughter’s marriage, a retirement income for your parents, or just financial support to your spouse to live comfortably after you are gone. 

2. Protection Against Emergency Medical Treatments

Did you know that as per your life insurance policy, you are also eligible for enhancing your insurance with a critical illness rider? A critical illness rider is an add-on benefit that you can add to your term insurance to add extended coverage to protect you against various lifestyle disorders. Your policy document will list the critical illnesses it covers.

If you are diagnosed with any one of them, the insurance provider will release the sum assured that you could use to pay for the treatment, medical expenses such as tests and medicines, and other expenses arising out of the loss of pay. There are many other riders you can attach to your policy to make it more customized. 

3. Year-On-Year Tax Benefits

When you read your life insurance policy details, you will see that all the premiums you pay towards your insurance cover come with dual tax benefits of life insurance. You not only get the tax deduction of up to 1.5 Lakhs on the premiums paid annually as per section 80C of the Income Tax Act, even the maturity amount received is entirely tax-free under section 10 (10D). 

4. Peace of Mind

You can never put a price tag on the peace of mind you get knowing that your family and their financial interests are in safe hands. Investing in term insurance at the right time will help you ensure that your loved ones are taken care of in the event of your passing. 

The primary reason for people to buy life insurance is to protect their family against the uncertainty that an eventuality can bring in their lives. As if the loss of losing you isn’t enough, they have to now worry about the debts and liabilities as well! You can completely remove these fears and worries by buying the right life insurance product.  

Don’t think that if you are single, you need not worry about these things. Life, by its very nature, is unpredictable. So, even if you don’t have any direct dependents now, this is not going to be the case forever. Buying a life insurance policy at a young age will be cheaper and will give you a much larger cover for your family. 

Besides, think about it this way, what if you invest in a new home with your spouse and something happens to you? How will they pay off such a huge debt alone? This is why life insurance is a must because it gives you the peace of mind that you hedged for your family’s future and covered all the financial risks in case something happens to you! 

5. Survival Benefits for a Secure Retirement

Life insurance policies are not just about securing your family members but also about yourself. While, in most cases, term insurance is purely an investment instrument, you can also consider taking the one that offers maturity benefits in case you outlive the term. Some insurance providers offer term insurance with return on premiums that entitles you to receive your premium payments back at the end of the policy term.  

Life insurance has many advantages. However, choosing the wrong policy or not understanding the life insurance policy can leave you underinsured. To avoid that, you must buy your term insurance only after careful research. Don’t forget to shop around for prices and policy benefits with insurance providers, such as Max Life Insurance, that allow you to compare and review policies online before purchase.