Life Insurance: What Is It and Why Should You Buy It?

Life Insurance: What Is It and Why Should You Buy It?

Life Insurance: What Is It and Why Should You Buy It?

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Life insurance is a contract between the policy owner (you) and an insurance company. It guarantees a sum of money to the beneficiaries in the event of your death. This monetary benefit is offered in exchange for a fee called a premium.

Life insurance keeps your near and dear ones financially safe. They can comfortably continue with their education, clear debts if any, fulfil daily liabilities like paying utility bills or treating a critical illness with the sum assured even in your absence.

India is the 5th largest insurance market in the world growing at 32%-34% every year. Rising income and awareness are the key drivers behind this consistent growth. Learn more about life insurance and why it is necessary for an informed purchase.

Life Insurance in India

An ideal life insurance company helps you choose from an array of plans to pick the most suitable one. You can see the right option available by selecting your marital status and the purpose of getting an insurance plan. Simply talk to an expert in case of questions or if you require product recommendations. A few benefits of working with a reliable and reputed company are:

  • Multiple payout options (regular income or lump sum).
  • Flexible premium payment choices.
  • Transparency of investments.
  • Smooth claim settlements.
  • The minimum age of entry is as low as 18 years.
  • Hassle-free process of buying policies online.
  • Expert advice at your fingertips.

Keep your age, dependents, current lifestyle, income and existing liabilities in mind. It will help you pick a plan that can serve the desired purpose. Know that the premium on a life insurance policy is eligible for a deduction of up to ₹1.5 lakhsunder Section 80C of the Income Tax Act of India.

Types of Life Insurance

There are different types you can choose from as per your requirements like:

Term insurance plans: This is an affordable product that offers coverage for a specific period.

Child insurance plan: This is specifically designed for those with children to be able to offer a secured financial future in terms of basics like nutrition, education and career.

Group life insurance plan: You can offer financial security to your employees by purchasing a plan that covers all of them. It can be given as a part of employment benefit.

Why Should YouBuy Life Insurance?

A comprehensive life cover from a leading life insurance company in India makes sure your family members are financially independent. This ensures peace of mind knowing that they do not have to compromise on their lifestyle in your absence.

Life insurance can act as a source of steady income when you opt for monthly payouts. This is especially helpful during your retirement or till you find a new job after losing one.

You are able to save significant tax with a life insurance policy. Along with 80C, you are also eligible for tax-free proceeds on death/maturity under Section 10 (D) of the Income Tax Act.

Life insurance extends a friendly hand to your loved ones during tough times. They will have at least one less thing to worry about when you are not around. Purchase a plan from a trusted company where professionals help you in every step of the process.

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