At times when household budgets are spread thin, investing a part of your hard-earned money towards life insurance might seem unnecessary.
Why would you pay insurance premiums , when the same money can be used elsewhere?
Here are some simple reasons you should to avail life insurance:
- Help your family meet their goals
Important things that your family saved for, like a new home or good education for the children, will not be out of reach in your absence. Your family will still be able to meet its needs and wants, without worrying about whether or not they can afford it.
- Income Protection
It would be unfair for your family to have to combat both emotional and financial loss at the same time. Life insurance can reduce the negative impact of loss by contributing towards replacing your financial contributions to your family.
- Stick to your lifestyle
Life insurance is a financial support that allows your family to maintain the lifestyle you chose for them. Your family need not undergo drastic alterations after losing you.
- No worries about loans
With you gone, your spouse might find it difficult to repay loans and other financial obligations that you made together. However, an adequate life insurance cover (sum assured)might mean that there will be no need to worryabout outstanding loans or debts.
- Saves tax
Life Insurance offers tax savings also. Premiums paid towards life insurance are currently deductible under section 80C, while contributions made towards your pension plan are currently deductible under section 80CCC. The maturity and claim proceeds are also tax-free. However, there are certain annual limits to these deductions. Further, the benefits can vary as per the provisions of the Income Tax Act. Consult your tax advisor forguidance.
Do you still think life insurance is an unnecessary expense?