Contents
Almost all of us know how important it is to invest in a life insurance policy. However, you will be surprised to know that despite understanding the importance of life insurance, a vast majority have never considered investing in one. Human life is fragile, you never know what will happen in the next moment. It only takes a second for your planned life to feel like a distant dream. For times like these, you should buy life insurance. It acts as a protection for you as well as your loved ones. In this article, we are going to discuss the benefits of whole life insurance.
-
Death benefits
In case of the policyholder’s demise, the insurance company pays the beneficiary a pre-decided coverage amount that acts as a death benefit. People often wonder why buy whole life insurance when everything seems to be fine in life. But remember, when you buy life insurance, you aren’t inviting trouble in your life. You are simply acknowledging how unpredictable life can be.
-
Investment components
There are numerous types of insurance policies that act as both investments and insurance. The premium you pay towards these policies, a part of these premiums is invested in the market. Thus making them an excellent option for protection as well as wealth generation.
-
Maturity benefits
The insured pays the premiums for a set tenure. If something were to happen during the said tenure, the family gets compensated. But if the insured were to survive the tenure, the premiums paid are returned.
-
Tax benefits
The premiums paid towards the policy are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Also, the payments received from these policies are often tax-free.
-
Coverage against liabilities
Your debts and loans should not be a liability to your family in your absence. The payments that your family members receive in case of your sudden demise are enough to cover all your liabilities. So, when you buy life insurance, your family can take care of your loans along with their financial needs.
-
Additional riders
Additional riders help enhance your life insurance coverage. These riders are an excellent addition to your policy in situations where your life cover cannot come into play.
Apart from whole life insurance, there are a few other Types of life insurance you can invest in
- Term insurance
- ULIPs
- Endowment plans
- Moneyback policies
- Whole life insurance
- Group life insurance
- Child insurance plans
- Retirement plans
Life insurance has become a necessity these days. If you haven’t invested in a policy yet despite knowing whole life insurance benefits, there is no time like now.
