Last Updated on March 7, 2021 by Filip Poutintsev
Buying insurance is not avoiding risks but being sure enough that you can handle that risk successfully. Most often people disregard the possibility of running into a misfortune or an accident only to regret later for not preparing enough.
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A Life Insurance is Self Explanatory
Taking up an insurance is a guarantee that you can overcome any unfavorable incidents come what may. We often consciously or subconsciously do not what to think or plan for those unfavorable happenings. Doing so we are unwillingly risking the lives of our dependents and other family members.
If an unexpected death happens to the bread earner of a family, the immediate effect will, of course, be the irrecoverable along with the situation to deal with the absence of the deceased which never seem to end. But, all that is temporary, to be honest.
The life of a family with a life insurance policy is much smoother than of the one without it.
Here are Some Benefits of Having a Life Insurance
It is not just the grief that the family has to deal with. There are a lot of liabilities that never seem to end like rents, education fees, EMIs and a long bill of daily household expenses.
If the family has life insurance, they can at least have a smooth present and probably a good future with some financial plans.
1. Risk Coverage
Life insurance provides a secure way to deal with undesired life events. The modern-day life full of rush hours is very uncertain and a happy family celebrating a vacation today could be facing an unforeseen situation tomorrow.
Life insurance is a way to make those situations pass with as much ease as possible.
2. Investment Return
When you compare other investment plans like bank deposits or stock exchange, you’ll realize that insurance yields better return than most of the other options available.
There are bonuses that make investment in insurance much attractive than others. The assured amount can be fetched back either at the end of the term or after the death of the insured, both of which are well paid back.
3. Tax Savings
Having an insurance plan is a way to reduce your tax liability. The amount invested in insurance policies in many countries are eligible for tax waving facilities. A salaried citizen can save a certain percentage of his/her taxes if they own a life insurance policy.
4. Loan Facilities
Policy loan is another good feature about the life insurance schemes. If you are in a desperate need of money, your life insurance policy can get you a defined amount of loan under the loan provision.
Insurance, these days is not just considered the security of the insured. People buy insurance policy so that their children and loved ones could use the savings after their life. Life insurance provisions offer an insured to assign a beneficiary which will be subjected to receive the benefits once matured or after the death of the insured.
6. Financial Security
Buying an insurance policy is buying security for the unforeseen future. We usually do not tend to think about the misfortune that might happen to us and avoid to take the decision to plan for the future tragedies. The earning we make is supposedly for the luxury and the dreams to wish to fulfill.
7. Accumulated wealth
The savings are always there for you and your family. Whatever amount of premium you will be paying yearly will come in handy when the policy matures. The accumulated wealth is as good as, or in fact better than a bank deposit with a lot of other attached benefits as mentioned above.
8. Rider Benefits
The term Rider in insurance means the added benefits to the basic insurance policy. They provide additional coverage that are beyond the scope of the main policy. The main feature of the riders are that they can cover severe illness, accidents and also waving of premiums in many cases.
9. Charitable Contributions
Charitable contributions, in most cases, comes under the Rider benefits which is a relatively newer feature. A life insurance policy with a face value of $10 Million can have a charitable contribution of 10 -12% to the charity of the owner’s choice.