Life Insurance and its benefits

Life insurance is an assurance that in our absence our loved ones will not get financially affected. It provides financial protection to our family.

Following are the benefits of Life Insurance :

1. Provide financial protection to family :

After death of family member, life of family badly affected in many ways. If that person is main earning member, you can imagine what challenges faces by family. Life Insurance makes sure that in that case our family will not get affected atleast financially. It provide lumpsum payment to nominee of insurer in such situation.

2. Wide variety of plans :

There many types of life insurance plan. You can have Term Plan, Insurance cum Investment Plan, ULIP plans etc. So you can choose your plan according to your age, income, need, goal and requirement.

3. Save Tax :

By paying life insurance premium you can save income tax. You can claim deduction u/s 80C of Income Tax Act upto Rs. 1.50 Lakhs a year. Maturity amount is also non taxable u/s 10 (10D) of Income Tax Act.

4. Helps in Financial Planning :

Life Insurance not only protect our family financially in our absence, it also helps us to plan our future goal with the help of Investment cum Insurance plan.

5. Financial help in case of Critical Illness :

Life insurance plans also covers critical illness. Premium of this plan is usually high. It provide lumpsum amount, insurers heath affected by critical illness. This amount he / she can use for his / her treatment.

6. Financial help in case of disability :

Some life insurance plan also provide accidental disability cover. It provide financial assistance in case of loss of income or reduction in income due to disabilities caused due to accident.

This are few benefits of Life Insurance. So we can understand that person who is  earning member of family must have insurance plan according to his / her need to protect financial future of there family.