Advantages of Life Insurance : Your One Stop Guide

Life Insurances 231 views

Life insurance comes with multiple benefits and future security. You should always choose life insurance by comparing the plan with other policies as well. While buying the life insurance you should not forget that it is not just a saving tool, rather it is giving you various benefits, which you will never get from anywhere else. It not only gives you higher return on your investments but also  gives better coverage for your family in your absence. Here are some key points and advantages of buying the life insurance.

Risk cover: Life insurance offers you good risk cover, which no other saving plan offers you. It ensures that your loved ones still enjoy the same life style and privileges, which they are enjoying in your presence.

Planning different life cycle needs: Life insurance provides financial support to your family and loved one after your unfortunate death or physical disability. It not only acts as financial tool for your family, but also offers great financial security. You can save money as per your future financial requirements, be it your child's marriage, their higher education, building your dream home or planning for your retirement. You can save according to financial requirements and goals. There are policies that offer you assured sum or guaranteed return at the maturity of the policy.

Protection against increasing health expenses: There are various companies and financial firms offering numerous health insurance plans to customers. Health insurance plan offers you various health protection plans and benefits against critical illness. These plans also act as good financial tool at the time of hospitalisation and for other medical expenses. It is really critical and important to buy a medical insurance to meet the increasing expenses of the health sector.

People Also Look For  Don't Be Confused While Buying a Second Life Insurance Policy

Builds the habit of thrift: Life insurance is a long-term plan. Generally, you buy a policy for at least 10 years or maximum 30 years. The term of the policy majorly depends upon your age and how long you want to invest in the policy. Regular savings over the period of time ensure hefty returns after maturity of the policy. It helps you to meet your financial liabilities with ease.

Safe and secure investment tool: Life insurance is the safest and most secured way of investing your money. IRDA of India, the regulatory body, ensure the safety and security of the policyholders and stakeholders.

Assured income under pension plans: Life insurance is long-term investment tool and one of the best instrument for planning your retirement. There are various pension plans available in the market, which can help you in building your funds over the period of time. You can choose any of the financial plan that suits your requirements. You can choose a plan that will return money on regular mode after the maturity or you can choose for one lump sum return payment.

Facility of loan over policy: This is another benefit, which most of the policyholder ignore at the time of buying the policy. Policyholders have the option of taking loan against the policy. This helps you to  meet uncertain and unplanned expenses. You can take a loan with lower rate of interest   if you negotiate well with the bank or financial firm. You can take a loan without affecting the benefits and other perks of policy.

People Also Look For  These Reasons are Enough to Buy a Term Insurance Plan

Tax benefits: Tax benefits are another good reason to buy life insurance. You can claim the tax benefits of upto Rs. 1.50 lakhs per annum on your savings against life insurance. The life insurance comes with various benefits and tax-benefits are one of the most desired benefits welcomed by all.

Home loan against life insurance: You can use your life insurance policy to avail home loan at a lower rate of interest. You can mortgage your life insurance policy and take a loan, so that in case of any unfortunate situation your family will not face any short-fall of money.

Personal Loan Interest Rates May 2018
Bajaj Finserv 10.99% - 16.00%
Fullerton India 14.00% - 33.00%
HDFC Bank 10.99% - 20.99%
ICICI Bank 10.99% - 18.40%
IndusInd Bank 10.99% - 16.00%
Kotak Bank 10.99% - 20.99%
RBL 13.00% - 18.00%
Standard Chartered Bank 10.99% - 14.49%
Tata Capital 10.99% - 18.00%
Home Loan Interest Rates May 2018
State Bank of India/SBI 8.35% - 8.90%
HDFC 8.40% - 9.10%
Bank of Baroda 8.40% - 9.40%
LIC Housing 8.45% - 8.90%
PNB Housing Finance 8.40% - 8.99%
ICICI Bank 8.45% - 8.95%
Axis Bank 8.40% - 8.75%
Citibank 8.40% - 9.25%
Indiabulls Housing Finance Limited 8.45% - 9.75%
Kotak Bank 8.35% - 8.50%
DHFL 9.00% - 10.00%
Reliance Home Finance 8.75% - 10.00%
EMI Calculator