Every responsible individual seeks to save enough for his/her family to keep them financially secured in case of a mishap. But not all salaried people can afford to invest in risky schemes to multiply their money. Hence, many seek to invest in one of the most trusted modes of investment Life Insurance. This plan over the years has served as the best investment plan for many individuals guaranteeing them the security of their family in case of an eventuality.
Simply put, Life insurance is a basic plan wherein you avail the cover for a particular period of time and regularly pay premium towards it. In the unfortunate event of the death of the insured, the sum assured is handed to the nominee of the policy. With the growth in demand for the policy there are many more benefits you can avail with the plan. But the primary purpose for the plan is to keep your family safe. Here’s why a life insurance plan is the best investment you can make –
Financial security to your family –
As mentioned before, the policy offers the entire sum assured to the nominee of the policy holder in case of the sudden demise of the insured. This amount works as a life saver to help your family meet with the different requirements of daily life. The emotional loss is irreplaceable but with financial aid it gets easy to get life back on track. This amount can also be used to pay some debt or for the education of the children.
Systematic Savings –
With the rising cost of living, it can get difficult to regularly save for the future. Life insurance gives you a disciplined plan that helps you save systematically for the future. Also, you develop the habit of saving. These regular savings help you meet your financial goals.
Tax benefits –
Apart from keeping your family financially stable in your absence a life insurance plan also offers you excellent tax benefits in your life time. You can avail tax savings on the premium paid and the benefits received subject to the prevailing provisions under Income Tax Act, 1961.
Flexible options –
Life insurance offers you a lot of plans that you can choose as per your requirement and not only that you can even customize them as you want. Under life insurance there are several plans like term plans, retirement plans, ULIPS, Endowments, child plans etc. Each of them has a different way of functioning and benefits. You can choose which ever is the most convenient to meet your goals. Moreover in these plans you have the liberty to choose the term duration, the sum assured, mode of payment etc. as per your ease.
Why is life insurance the best means of investing