Living a life and driving a car is pretty much the same. There are times when you have smooth and worry-free drives to your favourite destinations, while there are moments when your car takes a wrong turn resulting in complete wreckage and damage, putting you through financial stress. However, no matter how many similarities could be drawn between the two, you can always fix a car. If your car accident turns fatal, your family may replace the car, but will not be able to cope with your absence, eventually bearing the brunt of financial strain. This is exactly what should get you thinking about what the value your life holds for your family, so they can live their lives without compromises when you are not around.
To make your life easier and help you make the right choice, we bring to you, 5 stellar reasons why you need a life insurance policy. Read on why a life insurance plan is a must!
Replaces Lost Income
If you are the sole bread-earner of the family, your absence means a halt on the family’s income. Such a scenario can affect your family’s budget, day-to-day expense management and plans for tomorrow, and in the end, force them to lead a life of compromises. This is when a life cover helps them not just to lead their lives the same way as before, but to fulfil their aspirations without worrying about their finances. It is recommended that the life coverage you opt for should be ten times your annual income.
Can Cover Your Child’s Educational Expenses
A life insurance plan can ensure that your children continue to dream big, despite what life brings to them. The financial shield of a life insurance cover ensures that your family can fund your child’s school, higher education and more.
Takes Care of Your Liabilities
Sudden death can bring your family’s life to a standstill. And, what makes this worse is the burden of financial liabilities. Losing a breadwinner could not just disrupt a monthly budget but also weaken the overall financial foundation of your family, increasing financial debts. But, with a life insurance plan in place, your financial liabilities are taken care of.
Supports Your Ageing Parents
Millennials in India are not very commonly seen as caregivers. However, we saw that the covid-19 pandemic turned the tables. Nearly 39% of the Indian millennials stepped into the caregiver shoes for the first time. This further underlines the fact that your parents are your responsibility, even if they are independent. And, life insurance plans are not just for your spouse or your children, but also for your extended family. Your life cover can support your ageing parents and help your family take care of their medical needs and other expenses too.
Offers Tax Benefits
Last but not the least, a life insurance plan is a safe and sure way of reducing tax cuts. The premium amount you pay towards your life insurance plan is eligible for a tax benefit of up to Rs. 1.5 Lakhs under Section 80C. Not just this, the death or maturity benefit your nominee, or you receive is also exempted from taxes, under Section 10(D) of the Income Tax Act, 1961.
Above all, life insurance plans let you live with peace of mind, without worrying about your family and their requirements. Some life insurance plans like Term Insurance are affordable and it is best to buy them at an early age as premiums are even lower. So, the next time you are stuck in between deciding whether you need life insurance or not, consider these reasons and decide right!