Why Should Life Insurance Be Your First Investment?

Life insurance aims to alleviate any financial difficulty that might arise from any outstanding debts or other obligations that must be satisfied. It is one crucial financial policy that provides a lump sum payment known as the death benefit upon the death of the insured. Life insurance plans help the policyholder and their family in the most uncertain time or period of life. There are different types of life insurance but mainly term life insurance and whole life insurance.

It is crucial to buy a life insurance policy as it gives direction to one’s financial planning as well as gives lifetime benefits to the policyholder and their family members. In addition, a life cover policy is intended to provide financial security in the event of the policyholder’s demise. It also serves as a sound investment strategy that, in turn, assists you in achieving a number of personal objectives. As more and more people realise the value of investing in life insurance plans, the life insurance industry in India has been expanding steadily.

It is better to purchase life insurance at a very early age. Having a policy at a younger age will help you in getting it at a lesser rate. Also, the person is very fit in terms of health. But, as you age, there are health issues that crop in and would make it challenging for you to cover the desired amount in insurance. But, before investing, it is important to first understand one’s needs and requirements, check different life insurance plansand then go for a life insurance investment. Thus, we have also listed the reasons why a Life Insurance policy should be your first investment.

[lwptoc]

Life Insurance Policy – A First go to ‘Investment’ Plan

Here is why a life insurance policy should be your first investment:

• Tax Benefits

With your insurance coverage, you can anticipate tax savings. You will be qualified for tax-free proceeds in the event of maturity or death under Section 10(D) of the Income Tax Act of 1961, and the premium paid for life insurance plans is always eligible for the maximum tax deduction of up to ₹1.5 lakh under Section 80C.

• Security

The security it provides for your family and loved ones is one of the primary benefits that come to mind when considering the advantages of life insurance. This is one of the main reasons why one should buy life insurance and receive life insurance return on investment at the right point in time.

• Saving plans

The policyholder should ensure to pay the premiums regularly and on time in order to keep the life insurance policy active. This will help in creating a habit of saving. Furthermore, when there are investments in hand, one is often cautious about their spending. This will also help in budgeting and thereafter prioritising the expenditures. Further, this will help the policyholder in having liquidity in hand to meet future requirements in life.

• Retirement Goals

Everyone aspires to have robust retirement savings that last for a very long time. You can truly generate a consistent monthly income in the future with the correct life insurance strategy. You may bolster your retirement goals by investing in life insurance. Apart from the retirement benefits, there are a number of added benefits that the various types of life insurance policies coverage.

• Takes care of the future

You can always realise your lifelong goals, aspirations, and plans using the money from your life insurance. After retiring, you may utilise this to start a small business or perhaps even purchase a home for yourself. All can be done by choosing the right life cover policy.

Conclusion

Buying a life insurance policy is one of the best things you can do for your family, and what is better than starting to do this right at an early age? The earlier you start investing, the better the outcome will be. You can also be in a condition to have financial independence and, at the same time, help and support your family in times of hardship.

The need for life insurance changes as people go through different stages of life. But, you can definitely check different life insurance plans of different insurance providers such as Tata AIA Life Insurance Plans and many others to buy life insurance for you and your loved ones.