Significance of life insurance plan in today’s world

In this modernised world now a day’s people are much more aware regarding the importance of insurance so insurance has evolved as a process of safeguarding the interest of people from loss and uncertainty.  Life insurance need to be in place to cover for loss of life or disability that is commonly caused by exhaustion, accidental falls, scares, missed body steps and coordination and machinery risks either at work place or at home. There are various life insurance policies available to the market. The global life insurance choice will depend of either affordability of the feeling of security.

In India currently there are 24 working life Insurance Company. Life Insurance Corporation of India (LIC) is the only public sector insurance company. All others are private insurance companies. Many of these are joint ventures between public/private sector banks and national/international insurance-financial companies.

Here lies some importance of life insurance in today’s life:

LOOKING AFTER YOUR LOVED ONES EVEN AFTER YOU’RE GONE:This is the most important aspect of life insurance. Your family is dependent on you even after you’re gone and you certainly don’t want them to fall in trouble and want your family to live a peaceful life so life insurance could be a great saver.

HELPS ACHIEVE LONG-TERM GOALS:Since it is an instrument that keeps you invested for the long term, it would help you achieve your long-term goals such as buying a home or planning your retirement.

LIFE INSURANCE GIVES YOU RETIREMENT GOALS: Putting money in an annuity is like a pension plan- put in some money regularly in a life insurance product and enjoy a steady income every month even after retirement.

BUYING INSURANCE IS CHEAPER WHEN YOU’RE YOUNGER: Since your young age start spending on buying different plans that will later on give you benefit and your family too.

TAX-SAVING PURPOSES: You could save taxes with insurance policies irrespective of what plan you buy. The premium you pay on an insurance policy is eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C, and for tax-free proceeds on death/maturity under Section 10 (D) of the Income Tax Act, 1961.

A TOOL FOR FORCED SAVINGS: If you choose a traditional or unit-liked policy, you pay a premium each month, which is higher than what it costs to insure you. This bit of extra money is invested and it accrues cash value. This cash can then be borrowed against the policy or you can choose to sell it or draw income from it.

PEACE OF MIND: Man is mortal and you can’t deny death but at least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you’ve done all you can to meet there difficulties.

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