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What is life insurance

Life Insurance is described as a settlement among the policyholder and the coverage agency, wherein the lifestyle coverage agency can pay a particular sum to the insured individual’s own circle of relatives upon his loss of life. The lifestyle coverage sum is paid in change for a particular quantity of premium. Life is beautiful, however additionally uncertain. Whatever you do, but smart and tough you work, you’re by no means certain what lifestyles have in shop for you.

It is consequently critical which you do now no longer depart something to chance, especially ‘lifestyles coverage’. If you have been to head through the dictionary definition, “Life Insurance” is an economic product that can pay you or your dependents an amount of money both after a fixed duration or upon your loss of life because the case can also additionally be.

Close up of Life Insurance Policy with pen, calculator

Why you Need Life Insurance Now?

The importance of getting a Life Insurance is to avail of the “peace of mind” that it brings along. However, having a good enough quantity of lifestyles coverage successfully units your mind free from a few critical questions like:

  • How will happen to my family financially after I die?
  • How will my spouse and children contend with their prices after I am no more?
  • How will I offer for my own circle of relatives in case I lose my job after an accident?
  • How do I make certain that I am capable of fund my child’s better education?
  • How do I make certain earnings after my retirement?

Benefits of Life Insurance:

1. Risk Coverage: Insurance provides risk coverage to the insured family in form of financial return in lieu of premium paid.

2. Cover for Health Expenses: These policies also cover hospitalization expenses and critical disease treatment.

3. Difference plans for different uses: Insurance companies offer a different type of plan to the insured depending on his need for insurance. More benefits come with the more premium.

4. Promotes Savings: Insurance policies also come with the saving plan i.e. they invest your money in profitable ventures.

5. Guaranteed Income:  Insurance policies come with the guaranteed sum assured amount which is payable on happening of the event.

6.  Loan Facility: Insurance companies provide the option to the insured that they can use a certain sum of amount. This option is available on selected policies only. 

7. Tax Benefits: Insurance premium is tax deductible under section 80C of the income tax Act, 1961.