Unfortunately, most people ignore the necessity of having a life insurance policy due to the ignorance or fear. But uncertainties such as work accidents, illness, natural disasters and so on are part of our life. The realization about the life that an accident or a mishap can end your life at any time may compel us to take a life insurance. Life insurance policy is a better source of money to eliminate the financial distress of your dependents. However, most of the people make delay in purchasing life insurance only because of the doubts they have. This article helps you find solutions for your doubts and allows you purchase a life insurance policy.
If you are an earning individual with family, it’s your responsibility to ensure the financial stability of your dependents in the absence of your income. Life insurance is the most significant and simple way to fulfill the financial needs of your family. If the earning member of your family is not insured or under-insured, the dependents have to face a great financial distress after his death. Therefore, don’t make delay in buying an adequate insurance coverage.
Advantages of Life Insurance
Life cover is the most significant advantage of life insurance policy. When you purchase an insurance policy, you have to choose the right amount of life cover in order to ensure the future financial stability of your family. The thumb rule exists in buying life insurance policy is that the life cover has to be ten times of your annual income.
Life insurance is a better way to make the future of your family secure and happy. It is a long-term saving that helps you meet your retirement and all other needs such as child’s marriage, higher education and so on. When you buy a life insurance policy, you can enjoy the double benefits- life protection and savings.
If you are a salaried person, having a life insurance help you get a tax deduction. Life insurance policy is an effective way to reduce tax liability for a salaried person. The insurance premium is eligible for rebate from the amount of gross taxable income.
Life insurance policy gives you the benefit of taking a policy loan if you are in need of money. The loan amount can be a limited percentage of your sum assured. If your sum assured is high, you can take a good amount of money as a loan.
Life Stage Planning
Life insurance policy helps you plan your life properly. It is not only a death benefit scheme but, it is a long-term investment that helps you make your future more joyful.
Things You Should Know Before Buying Life Insurance
- Choose the right amount of insurance coverage.
- Compare different kinds of insurance policies.
- Choose affordable premium payments.
- Understand the renewal policies.
- Read your policy carefully before signing.
- Review your policy every few years.
- Evaluate the future of your policy.
I hope you enjoyed this article about the importance and benefits of adequate life insurance coverage.
Interested in more articles about frugal finance?
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Published by Michael J Schiemer
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