A Single Life Insurance Plan Comes with Many Benefits
PNB MetLife India 16-08-2016 11:21:51 AM
Life insurance is an essential part of any financial portfolio. It ensures that there are no gaps left for unexpected twists However, a carefully selected plan will provide much more than just the required coverage. Here is how:Read More
Benefits of Life Insurance
Life Risk Cover – The most important and primary benefit is that it helps protecting the financial future of your loved ones in your absence.
Long-Term Saving – It is a systematic long-term tool for wealth creation that helps meet financial needs after retirement or fulfill future goals, such as the education of one’s children or their marriage expenses.
Tax Benefits – Life insurance is a tax saving tool under section 80C*. When you invest in a term insurance plan, endowment plan or retirement plan, the government deducts the premium amount you pay from your taxable amount. You might be saving tax on a maximum taxable income of Rs. 1 lakh per year.
Riders, Health Benefit – Riders are provisions purchased separately from the policy at an additional cost, providing extra benefits. These riders or stand-alone health policies offer additional benefits such as covering hospitalisation expenses for critical diseases. Given the escalating medical cost and incidences of lifestyle diseases, these riders have gained critical importance.
Assured Income Benefits – Your family’s security is guaranteed through the assured income that they will receive on regular intervals. This income could provide for rent, electricity bills, telephone bills or education of a child – compensating for the income after the loss of the main income provider.
Covering Debts and Other Expenses – Besides covering livelihood expenses, life insurance also provides for mortgage, car loans, and more. It further covers all burial and funeral costs.
Inheritance Substitute – No matter how wealthy we are, we always tend to make an effort to leave something behind as inheritance. Life insurance is a way of creating an inheritance for your loved ones by making them your beneficiaries.
Peace of Mind – This is mostly the primary motivation behind someone taking a life insurance. No one would like to think about unfavorable eventualities. But if under any circumstance, should they arise, Life Insurance Policies help in ensuring that your loved ones are taken care of in your absence.
*Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time.