In today’s time, many people are taking life insurance policy for protecting their family members in the event of unexpected death of a person, typically the breadwinner. As a matter of fact, life insurance is a great way to transfer risk from the family to an insurance provider. Aside from that, there are several benefits that you can gain when planning to get one. And, this section will tackle them.
Such insured events that can be comprised are requirement for a long-term care, accidental death, ‘permanent disability’, disability because of illness, critical illness diagnosis, death or terminal illness diagnosis. Life insurance will not just benefit your family in case of your death, but will also benefit you as a great investment. This can offer benefits to your offspring, emergency loans while you’re still alive and more.
In addition to security and savings, following are other benefits that life insurance can give to everyone, making it as an essential part of financial plans.
- Risk transfer
We all know that fatal accidents may happen anywhere and anytime of the day. It has the potential to push you into financial distress or cause you extraordinary hardship. In such case, it makes a sense to insure your life as a breadwinner in your family. With the help of term life policies, your family can be able to continue enjoying a good life quality against any unexpected event.
- Serves as a plan for life phase needs
Not only life insurance provides financial support, but serves as a long-term investment too. You can be able to meet your goals, whether it is for the education of your children, their marriage, planning a comfortable retired life or building your dream house, along with your risk appetite and life stage. Traditional endowment plans provide in-built assurances and defined maturity benefits with variation of product options like Guaranteed Maturity Values, Guaranteed Cash Values and Money Back.
- Protection against growing health expenses
This kind of insurance provides protection against hospitalization expenses and critical diseases. This assistance has assumed crucial importance given the growing financial needs at several life stages.
- Profitable and safe long-term investment
Life insurance is an extremely regulated sector. Being a long term instrument of savings, it ensures that every life insurers will focus on returns over a long-term as well as don’t take risky savings decisions for immediate gains.
- Tax benefits
The insurance plans offer attractive tax benefits at the time of exit and entry under most of plans.
- Can be collateral
Your entire life insurance policy’s cash value is a hard possession. This means, you can use it as collateral and borrow against. If your family has an entire insurance policy with a covered cash value and requires drawing down cash for the down payment of a house, this is a beneficial feature.
Only life insurance is the investment option that provides specific products ideal for different life periods. It ensures that the offered benefits to the people reflect their needs at a particular life period, and ensures their financial goals will be met.