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Benefits of Life Insurance

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preatheep j
Benefits of Life Insurance

The advantage of life insurance is also its functional purpose. The death benefit should be high enough to cover living expenses such as a mortgage and your kids’ college tuition, and should also provide a favorable financial cushion.

Term Life insurance is a tax-free lump sum of money (unlike funds your loved ones may receive from your inheritance or estate). In extension to hefty taxes, legal means like probate can sometimes tie up the supplies in your estate, so life insurance is the best way to ensure immediate protection when you die. Many people in India ignore getting an insurance policy because they think it is an unnecessary expense until an unexpected mishap or accident brings them to understand the value of it.

VALUABLE RETURN ON YOUR INVESTMENT

Several financial advisors in India recommend that everyone must finance a life insurance policy not only to fit your family with financial security when you are not around but also from the view of gaining important returns from the investment

TAX BENEFITS

One of the many benefits of life insurance is that it gives various tax advantages. If you are a salaried worker and have purchased a life insurance policy, you can declare a deduction under Section 80C. Currently, under this section, you can get a maximum tax deduction of Rs. 1, 50,000.

 

GUARANTEED INCOME

Your family feels secured because you bring in regular income to cater to their needs. The benefits you earn aids in funding the loan (if any), rent, daily bills, child study, and other home expenses. Certain life insurance policies provide proper pay-outs, which can recompense for the loss of benefits due to the death of the family’s earning member. 

SECURITY OF BUSINESS

There a few life insurance corporations in India that give a choice, where? if you have bought a policy and run a business, then your spouse can buy a percentage of the policy holder’s after the death policyholder. In this case, the business partner will have to confirm an agreement with the life insurance company, and the pay-out receive after exchanging the share will be given to the selected nominee.

 

 

 

 

 

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