The Best Time to Buy a Life Insurance is Now | Should you buy Life Insurance | IndiaNotes.com
Life is uncertain. It is, therefore, necessary to be prepared at all times to combat an unforeseen eventuality such as death. For this purpose, you may consider investing in an insurance policy or a term plan.
One of the most popular and common types of insurance is life insurance. Such a type of insurance plan protects you and your family financially. In an unfortunate event of death, the insurance provider pays out a lump sum amount to the policyholder’s family/nominee in exchange for a premium. In case of survival during the policy term, you may receive the full or part of the face amount, based on the type of the policy.
Numerous individuals often postpone buying a life insurance policyat a later date. Many fail to understand that the sooner you invest in an insurance policy, the greater benefits you will reap.
Following are five advantages of buying such an insurance plan today.
1. Comes with a lower price
Buying alife policy at an early age offers the benefit of lower premiums. Insurance providers generally charge a higher premium to those in a higher age bracket in order to offset the high mortality risk. You may, therefore, consider covering yourself at the earliest in order to avail of the best benefits at a lower price.
2. Offers financial security for loved ones
Financial security is one of the most important aspects of a life policy. Alife policy provides financial protection to the insured’s family members in case of a premature death. The death benefit may be used by the policyholder’s loved ones to meet their lifestyle needs and other financial obligations such as debt even after the policyholder is no more.Besides, it acts as an income replacement in case the policyholder was the breadwinner of the family.
3. Helps achieve long-term goals
A life policyis generally invested for the long term. The accumulated corpus may be used to meet long-term objectives such as purchasing a new house, financing your child’s further education, or meeting your retirement goals. You may opt to receive a regular stream of income, which may be used to fund your financial needs in your golden years.
4. Your employer cover may not be enough
Many employers provide life cover to their employees. Unfortunately, you do not have control over your coverage. Besides, you may lose coverage in case you leave your job. In order to avoid such risks, it is advisable to buy an individual life policy right away. By doing so, you may avail of the numerous life insurance benefits without any worry.
5. Provides tax benefits
If you are looking to reduce your tax liability, you may consider investing in a life cover policy. Premiums paid towards such an insurance plan offer deductions under Section 80C, 80D, and 80DD of the Income Tax Act, 1961. You may avail of deductions on the premium paid for yourself, spouse, dependent children, and parents.
The aforementioned advantages throw light on why you need to buy life insurance right away. Not only does it provide the much-needed financial protection in case of a sudden demise, but it is also a wise investment decision.You may use the power of compounding to your benefit and utilize the accumulated corpus to meet your futuristic financial needs.