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IMPORTANCE OF LIFE INSURANCE

Insurance is a mechanism, which provides financial protection to individuals and some other entities, against the risk of loss, damage or liability. It provides peace of mind to beneficiaries by helping them to manage the risks and uncertainties of everyday life. 

We, the human-being, have some goals in life, for which money needs to be saved. Life is uncertain and that is why we have to take some steps for our future provisions. Life-insurance is a premier option which provides financial safety to our family. It provides risk-coverage without affecting our savings. All parents want their children to be taken care of, even when they are not around. Life insurance ensures your loved ones, won’t suffer financially in your absence. Life-insurance helps us to achieve our goals by building a financial corpus with the protection of life-cover, which inculcates a habit of disciplined saving. Paying a little amount as insurance premium for a particular tenure, it keeps growing to accumulate funds. Life-insurance offers multiple benefits, in case the amount of Life-insurance is obtained after the maturity period. Life insurance also provides financial support to the family in case of policy-holder’s death. This protection helps individuals and families to maintain their standard of living during difficult times. It protects future of loved ones by paying a lump sum amount referred to as death benefit, if an unfortunate event occurs. Life insurance promotes economic growth and provides peace of mind – important to assess one’s risk and purchase appropriate insurance policies to ensure that one is adequately protected in case of unforeseen events. 

Life-insurance ensure one’s child to have the best possible future by providing child-education plans, monthly income can be received by taking a retirement plan at an optimum time of one’s life. In case of exigencies, insurer may get loan against policy. Not only that, Section 80C of the Income Tax Act 1961, offers deduction upto Rs. 1.5 lakhs, paid towards life-insurance premium. Thus, it acts as a valuable tax saving tool. 

IN CONCLUSION: 

“Term has only a small fee, To offset a financial catastrophe. And there is no maybe, When you have debt or a baby. 

Whole life costs more at the start, But it works no matter when you depart. Taxes, funeral and lawyer’s fees, Estate planning? Its a breeze! 

Usually whats right is a mix, Some term, some whole life are the right picks. Your life insured, Means a family and/or business well secured”. ---------- 

TYSON RUSSEL.