Best Reasons to Buy Life Insurance

July 21, 2021
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Life is the most valuable asset of any individual, but it is also full of various risks and challenges. In such an unfortunate scenario, there is a serious situation where there is an income loss to the household. The situation is even worse when this individual is the sole earner of the family. In such situations, life insurance becomes very helpful. It acts as a security blanket for you and your family. Different life insurance plans like money back, pension scheme, child plans come with different benefits to meet financial goals for various life stages that’s why this is the best reasons to buy life insurance.

The younger you are when you buy a plan the cheaper it is you can use the power of compounding and reap benefits in the long run multiple policies together can help you to put aside huge sums of money for all your future needs as an investment, life insurance is essential.

How Life Insurance Work for You?

Life Insurance provides a monetary cover that helps protect against the financial loss and challenges that result from the death of an insured person. Life insurance is essentially a contract between the insurer and the insured (or the policyholder) wherein the insurer provides a definite amount of money as a financial cover (the pre-decided sum assured) to the nominee in the event of the death of the policyholder within the policy term or at the maturity of the policy (whichever occurs earlier).

If the policyholder has a life insurance policy that offers only a pure risk cover (like a term insurance plan) then the policyholder’s family will receive the life cover amount. In case of other life insurance policies like ULIPs or endowment or money back plans, one receives either the sum assured (as life cover) or the maturity benefit, whichever comes earlier.

Snapshot of Life Insurance Plans

Plan Name Entry Age Policy Term Riders
HDFC Life Click2Protect 3D Plus Plan 18-65 Years 5-50 Years Top-up, Life Stage protection
TATA AIA Life iRaksha Supreme Plan 18-60 Years 10-40 Years N/A
ICICI Pru iProtect Smart Plan 18-65 Years 5-40 Years Waiver of Premium, Accidental Death, Critical Illness
Max Life OTP Plus Plan 18-60 Years 10-40 Years Waiver of Premium. Accidental Benefit
SBI Life eShield Plan 18-65 Years 5-30 Years Accidental Death
Aviva iLife Plan 18-55 Years 10-35 Years N/A

*The above-mentioned plans are only for illustrative purposes.

Financial Security for your Loved Ones

Although human life can never be valued, and no amount of money would ever give us the joy or happiness that our late loved one can give us; financial security can go a long way in securing our future and survival. Life insurance offers us a way to put aside a sum of money based on the potential loss of income in case of an untimely death. In the event of your death, the emotional loss and pain are huge and ensuring that your loved ones have financial security is only the relief that a life insurance policy offers to your family.

While still reeling from the pain and anguish of losing a loved one, your near and dear ones would not have to worry about regular household bills or any installment payments as the cover amount would give them financial relief. A lot of households buckle under the financial burdens in case of an untimely demise of the sole breadwinner, but life insurance gives your family the security they deserve to rebuild their lives. Along with this, life insurance also helps you in providing your loved ones with a certain standard of living that they’re used to.

Future Planning for Your Family

Life Insurance plans like child plans help you to put aside a lump sum of money to secure the financial future of your children. These plans provide you with a life cover along with maturity benefits. In simple words, in case of an unfortunate demise of the policyholder, the nominee gets the lumpsum cover amount along with the maturity benefits. In case the policyholder outlives the policy term, apart from the security of being insured, he/she gets the survival benefits for which the plan was originally taken giving you ample to decide and plan your children’s future.

Retirement Planning

Life Insurance plans like Pension Plan and Money Back Plan offer you a chance to secure your retirement. Along with providing you with a security, these plans also help you to plan out your future that can be Reasons to Buy Life Insurance product like pension plans. Currently, especially in a country like India where there is so much competition in the job market, it is very important to plan one’s retirement. Money Back policy helps you by periodically repaying survival benefits during the term of the plan. Along with this, buying multiple policies at different stages of your life helps you to supplement your savings and puts aside huge sums of money for all your future needs.

Guaranteed Income

A Life Insurance policy ensures that you and your family have access to a source of guaranteed income in case of any disturbance in the flow of your regular income, due to any illness or accident.

Peace of Mind

A Life Insurance policy gives you the peace of mind that your family’s future is secure even when you’re not around.

In the Indian society, a lot of priority is given to financial security. Indians tend to buy gold or real estate but not Life Insurance, in today’s day and age having life insurance is as important as having food or shelter. Do buy life insurance and provide your family with security and stability even after you’re gone.

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