Purchasing a life insurance policy offers an array of benefits like:
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Life Risk Cover: It acts as a financial cushion to your family, even when you are no more. On the demise of the policyholder, his/her family receives a lump sum + bonus from the insurer.
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Wealth Creation: Some life insurance plans like ULIPs, retirement plans act as a mode of investment besides offering life coverage. It helps in wealth creation by building a corpus over the years.
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Tax Benefits: Income tax laws state that premiums paid on specific life insurance policies are eligible for a tax rebate after reduction of gross taxable income. Additionally, the maturity benefits are also tax-free for certain plans.
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Loan Options: Insured can take out a policy loan if he/she is in a financial situation. The amount taken is a percentage of the sum assured in the policy.
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Life Stage Planning: You can plan for various life stages like – child’s higher education, retirement, etc. by investing in insurance cum investment plans.
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Riders: These are extra benefits that be bought and added to your basic insurance. They cover any risks that the basic plan doesn’t cover.
Above all, the biggest benefit of a life insurance plan is the peace of mind it offers. By investing in the right life plan, you can breathe easy knowing that you have provided for the financial security of your loved ones, even if life were to take an unexpected turn.