For the young generation insurance is a concept which needs to be thought about when you are old. But it is a myth for sure. Purchasing a life insurance policy is an important decision from a financial perspective, but sadly only 10 % of the population in India are insured. It is regardless of your earning capacity but no one has any idea what the future holds. A lot of people fall victim to accidents or illness during the year and if you are the bread winner of your family then better watch out. You are living a mountain for your near and dear ones to climb if something untoward happens to you.
The best course of action would be to buy insurance online and take care of your loved ones. So do not ignore the benefits of buying an insurance policy if you are young. Let us now compile the main reasons for buying an insurance policy
The loved ones are taken care of
It is an important area of life insurance which you need to be aware of. Your family is solely dependent on you and they are in safe hands when you are gone. Whether it is taking care of your child’s education, meeting household expenses it ensures that your family is provided with the much needed financial support.
During financial crises obviously you would not want to be dealing with debt. Any outstanding liabilities are going to be taken care off if you have the right insurance policy with you.
Your long term goals are achieved
As it is an investment that is locked in for a long term your financial objectives are taken care of. A number of diverse investment options are provided and this is possible with a gamut of policies. Some of the investment goals would be to purchase a home or plan for your retirement. In fact some policies are paired up with investment plans which provide you with returns. In case if you opting for an investment based plan, then be aware of the risks and benefits associated with the same.
Life insurance is not about for yourself and your family. Some policies take care of your business as well. Most of us are aware on the life coverage of an insurance policy, but it can work out to be a viable investment option as well.
To conclude with the help of an insurance policy you tend to save on taxes as well. Under section 80 C, of the income tax act you are entitled to a benefit of 1.5 lakh. On the other hand if you choose a unit linked policy and are looking to pay insurance each month, the premium which you end up is higher than the cost for an insurance coverage. This extra bit of money can be invested and cash value can be derived. You can choose to withdraw cash from it or some money can be borrowed from it. But compare insurance policy plan online before you zero in to purchase one.