Often we research on various life insurance plans before we buy one instead of just trusting an agent. And more often we ponder a lot on getting the right set of benefits that we would receive from a life insurance policy. But seldom have we asked ourselves if a life insurance policy even worth it! Have you?
A simple response to that flickering query in your head can be answered by another simple realization. If you have a family or spouse who is financially dependent on you, then absolutely it is worth buying life insurance plans. But even if you are single and do not have a dependent, the benefits from a life insurance policy that you get over the lifetime is worth every penny.
Points to consider
If you are in a state of dilemma whether to buy a life insurance policy or not, consider how your dependents or family would fare if some unfortunate event occurs and you are no longer around to support them with their needs, your child’s educational expenses or their day to day needs. Almost every individual would agree that in their absence, their family would face certain financial crunch. A life insurance policy is thus a one-stop and affordable solution to all your family’s financial needs in your absence. It secures them in your absence, although loss of a family member would hurt more than any financial instability.
Life insurance plans provides various supports to your family in your uneventful demise. Some of which are:
- Meet day to day needs
- Paying off any outstanding loans or mortgages
- Children’s educational expenses and college fees
- Any unpaid medical expenses
- Any final expenses- estate taxes etc.
The primary idea is to save your family from depleting any of the lump sum saving greatly in meeting the ancillary expenses apart from day to day needs, which it definitely supports.
For individuals who are unmarried, life insurance plans would still help your co-applicant from paying off any mortgage, debt or even a car loan that you leave behind. However, for married individuals, a life insurance policy is always important to cover spouse and children who depend solely on your earnings.
Various life insurance options
Term life insurance: a term life insurance provides you with coverage for a specified period of time. Term life insurance is usually designed for tenure of 10, 20 or 30 years. Your family gets all
the benefits in an event of your unfortunate demise. However, if you outlive the insurance term period, the benefits are not reaped as it is meant to be a true protection policy. However, there are term plan wherein you can opt for return of premium plans by paying some additional premium.
If you buy life insurance term plans it comes with various riders too which provide adequate support during the lifetime of the policy holder and not just on death. Riders like waiver of premium which waives off the premium to be paid for the policy in an event of complete or partial disability of the policy holder. Similarly, a critical illness rider covers the policy holder in an event of diagnosis with a critical illness, right from the time of detection.
Whole life insurance: If you buy life insurance whole life insurance plans not essentially come with lucrative riders, but it covers the policy holder and the dependents for the entire life. In case of any unfortunate event leading to the death of the policy holder any time, the dependents get a lump sum amount from the policy, upon claim, as a benefit.
If you buy life insurance it also helps you save your taxes – Tax rebate on premiums paid upto Rs 150,000 a year can be claimed under Section 80C of The Income Tax Act 1961 – thus adding another feather to the benefit cap of life insurance policies. So what are you waiting for? If you buy life insurance policy that would be the best financial decision ever made to financially secure your family and it is totally worth it.
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