An unforeseen incident can happen anytime. These eventualities are a sign of how fragile human life can be. That is the reason you need to have the protection of the best life insurance policy in India so that you can not only safeguard yourself but also the financial interests of your loved ones. In the event that you do not insure your life, your family members will not only have to face the loss of their loved one but also the loss of income.
It is of primary importance that we protect the finances of our dependents, especially if we are the sole breadwinners of the household. When you buy the best life insurance, you can rest assured that your family will be taken care of, even if you are no longer around.
Let us discuss some benefits of the best life insurance policy in India and how it provides an added layer of protection to you.
1. Tax-saving benefits
Amongst the most common tax saving tips for salaried person includes investing in the best life insurance policy in India. The premiums that you pay towards your policy are eligible for tax saving u/s 80C of the income tax act. Even the death benefit received by the beneficiary is tax exempted.
2. Helps pay for expenses
A life insurance plan will give lumpsum death benefit to the beneficiary in case the insured person passes during the policy term. These funds can be used for variety of purposes, such as repayment of loans, household expenses, children’s education, etc. It can really help your family members in staying afloat in your absence.
3. Rider benefits
You can also supplement the coverage of your best life insurance with riders. These add-on benefits can expand the coverage of your policy for a nominal amount. You can add them as per your lifestyle and preferences. For example, if you are someone who has a family history of serious ailments, such as cardiac diseases or cancer, then you can take critical illness rider. The insurer will pay you the sum assured if you are diagnosed with one of the critical illnesses mentioned in your policy document. These funds can be used to pay for treatment, household expenses, doctor’s visits, medicines etc. Similarly, there are many such riders that you can add to your policy to enhance the coverage of your life insurance plan.
4. Retirement planning
The best life insurance policy in India is the one that provides holistic protection against life’s eventualities. It will not only take care of your loved ones after your passing but also provide you a robust support during your living years. There are many life insurance products that come with a retirement planning feature in them. These policies build a corpus of funds for you during your working years so that you can get a large chunk of money at the time of maturity to be used for day-to-day expenses post-retirement.
5. Death Benefits
Death benefit is the obvious benefit of a life insurance policy that protects your loved ones. The insurer will pay the amount as is mentioned in your contract along with all applicable bonuses.
6. Investment options
Some policies, like ULIP, have the inbuilt feature of investment with insurance. Some portion of your premium will be invested in a life insurance policy and the remaining will be invested in asset classes of your choice, such as debt, equity, balanced funds, as per your risk preference. These plans provide the ultimate protection of a life cover and also give you the option to grow your wealth by staying invested for a long term. By choosing a ULIP plan, you will be able to achieve your financial goals in the long run.
7. Maturity Benefits
Some life insurance products also offer maturity benefits. If the insured person outlives the policy term and didn’t make any claims on their policy, the total premiums are returned to the policyholder at the time of policy maturity. In this manner, you not only get protection in case of an eventuality but also get a savings component in case you survive the policy term.
The best life insurance policy in India is absolutely necessary these days. However, with so many products and insurance providers, it can be a difficult decision to choose the right one from a wide range of options. That is the reason you must carefully browse all the plans and choose the ones that give you maximum benefits for minimal costs. You can also compare policies online against costs, benefits, and features. Once you have found a suitable plan, be sure to research the insurance provider to ensure they are credible and trusted partners on your journey of safeguarding your future.