4 Essential Benefits Of Life Insurance Which You Should Not Miss Out.
Life insurance is a must for everyone as it gives has many benefits which make it worth the premium you paid for. Without using these benefits to the maximum efficiency you are missing out on some of things which can make your life stress – free and more resourceful.
Here are the few main benefits of having a life insurance policy
• Life Coverage
• Long Term Savings
• Financial Planning For Life Events
• Tax Savings
All these benefits gets you a peace of mind and a lot less worry. You know you have something planned for life events and there is something which can take care of your family in case of any mishappening.
Life Coverage –
This is always the primary benefit of any life insurance policy. This is where an insurance company agrees to pay the nominee of the life insured in case of insured person’s death. Now the question is, how much money is sufficient to fulfill the needs of the family if the earning member is not there anymore. A simple rule is to choose the amount which is at least 10 times your annual income. For eg – if a person’s annual income is 5 lakhs, he will needs a sum assured for at least 50 lakhs.
This amount should be able to take care of the expenses of policy holder’s children, wife or parents in his absence¬. So a policy should have enough sum assured to cover all those expenses comfortably.
There are a lot of options with LIC to get a good life coverage. All insurance plans offer this coverage. You can choose between term plans and endowment plans for this.
Long Term Savings –
Life insurance is one of the best ways to save and build wealth for the future. If you need money in the future for any life event like child education, wedding etc. you can start planning for it right away. This is a way to make systemized savings. A lot of plans for LIC will give you saving options along with insurance cover.
Financial Planning For Life –
There are different stages in a person’s life which can broadly be categorized as under:
• Fresh into job and started earning
• Newly married
• Married with kids
• Teenage kids
• Retired with married children
You have to plan for all these life stages in advance. The earlier you start planning for life’s important events, the better and more organized your life will be. LIC helps in your financial planning at all these stages.
Tax Savings –
This is also one of the biggest advantages of getting a LIC policy. You can get this advantage and save tax on your hard earned income by getting LIC products. Section 80C, 80CCC and 80D give you all the tax advantages you can get with this. The money you pay as premium is a deductible from your income when computing your income tax. Any maturity you get is also completely tax free.
Now all 4 of these benefits are there to be used by anyone. They can save you a considerable amount of money.
Besides the individual plans, you can also choose a combination of these plans to get the maximum benefit from them.