Benefits decide that we have to buy this thing or not, similarly we are discussing the convincing benefits of the insurance policy. After Reading these benefits you will be willing to buy the insurance policy. While most of the people do not like the idea of discussing the benefits of life insurance, there is certainly an important place for it in one’s overall financial planning. In fact, without the protection of life insurance coverage, loved ones may need to drastically alter their lifestyle if the unexpected should occur.
Following are the top reasons that why we have to buy the insurance policy.
Certainty Of achievement of Goal
Once the goal has been set ant the value for it has been estimated then finally we have achieve it insurance policy confirms the achievement of goal even some unfortunate event death or illness happens.
Maturity of most insurance policies are tax free under section 10(10D) and the premium paid is eligible for deduction under section 80C of the Income Tax Act, 1961.
Flexibility of Asset Allocation
Insurance policies provide flexibility in terms of asset allocation to suit policy duration, premium payment and fund switching options.
An investor may tailor his policy to suit its requirement.
Liquidity- after lock-in period
Most insurance policies offer good liquidity after the lock-in policy to take care of any emergency funds requirement. But they do have inherent deterrents in the form of charges to discourage unnecessary encashment.
Encourages continued contribution
Insurance policy is for specific goals but it can become deterrent against utilizing the money for other purposes and also encourages continued contributions.
Insurance Policies provide the fixed pay-outs on hospitalization, surgery, critical illness, etc. Remember these pay outs are for specific illness.
In case of accidental death insurance policy pays an additional sum assured to the beneficiary of this policy. After the accidental or unforeseen death family could be faced issues like reallocation, debt payment and so many so in these days insurance policy is benefited for your family sustainability.
Retirement Income and Planning
Government or private servants serve the nation throughout their service but after their retirement there in need of planning so that they have not to face the financial problems. Insurance policies provide you the assurance of finical help I different specific goals. Due to illness or health your family could be faced many problems but these problems can be solved by making plans with the insurance companies, they have expertise and professionals policy makers.
Inflation Shield reduces our income year after year as our cost of living keeps increasing. In this case insurance policy provides us financial help in achieving the goals.
I hope if you are not aware from the benefits of the insurance policy then you have understood some benefits. In addition insurance policies have a lot of business benefits. I hope if before reading these benefits you are against insurance policies then now you will be in favor.