Life insurance is an agreement between the insurance company and the insured whereby the company pays out a sum of money either on the death of the insured or after a set period of time. The insured person will be paying a specific amount of money as premium till the matured date.
Life insurance has several advantages. First of all, it provides a financial protection to your family after you are gone or in the event of your unfortunate death.
The compensation provided by the insurance company is much larger than you had invested. A life insurance becomes a good support to you post your retirement as you do not have to depend on any one for monetary help.
Under unit linked insurance plan, you can use your insurance plan to invest in stocks and mutual funds.
An insurance policy holder can also get benefit from tax deduction for up to INR 1.5 lakhs under 80C of the Income Tax Act.