Life insurance is one of the most important financial investments available in the market today however only a limited percentage of the Indian population has caught onto its virtues. Life insurance is very important to you and your family.
Its importance lies in the fact that it recognizes that life is uncertain, and a premature death of an individual owing to illness or accident not only impacts the family emotionally but also can lead to major financial stress.
If the deceased individual n is the sole breadwinner of their family or contributes financially to the household earnings, life for the surviving family members can be particularly brutal.
Read on to understand 5 major reasons as to why you should avail of a life insurance plan if you haven’t already. Financial security for those you leave behind One of the most important features of life insurance is that it helps you provide for those that are dependent on you financially following your death.
Even once you die, your family might still be dependent on what you leave behind for them. A sudden death might leave them in the lurch and unable to pay for their daily expenses. This holds particularly true in the case of families that have single breadwinners.
Best life insurance companies in the world
- Reliance Life Insurance
- Canara Hsbc Life Insurance
- Bajaj Allianz Life Insurance
- Aegon Life Insurance
- ICICI Prudential Life Insurance
- Aditya Birla Sun Life Insurance
- Aviva India Life Insurance
Expenses ranging from your child’s education to your partner’s need for financial security must each be accounted for and life insurance provides that much-needed stability during uncertain times that death might prompt.
Life insurance helps tackle debt Should you die with active debts tethered to your name, your family then becomes responsible for having to repay these owed dues. Ideally, you wouldn’t voluntarily want to put a financial burden on your family and you wouldn’t want them to have to deal with unpaid loans.
With the right life insurance plan issued in your name, however, debts pertaining to your home, car, credit cards, or a personal loan taken care of with the claim amount received from the life insurance company in case of your death. If you have taken an investment linked insurance product and survive the policy term, the maturity amount can also be used to pay off debt and liabilities.
Helps Finance Long-Term Goals Life insurance policies allow you to fulfill long-term financial goals you might have which may pertain to buying your own home, children’s education or planning for your retirement as a long-term investment option.