Life Insurance – Should It Be Used As An Investment ?
I still remember when someone asked me, “what have you done to secure your loved ones future?”. Imagine something happens to you and you leave your family with burden of finances to take care of. The thought of leaving my child without any financial support gave me goose bumps and made me buy a Life Insurance.
One should not stress yourself while investing in life insurance. The life policies are designed in a way to offer financial security and safeguards to the policyholders against their death. In India, the insurance sector is getting a steady growth as people are well adverse with the benefits of Life Insurance.
There are multiple options while choosing a Life Insurance policy, so better do your research and get advice from financial gurus before investing your money. There could be a possibility that you might invest in policy which will not give you any benefit, so beware of the fraud. Well, investing in Life Insurance is the best decision, you will not repent. Younger the age, cheaper the Life Insurance Plan. The other benefit is the healthier and younger you are, the more insurable you become and get the best policy rates.
With right insurance plan, you also get a regular income and healthy retirement savings for a long term. Hence, investing money in life insurance will help you in supplementing your retirement targets with a peace of mind that someone is there to take care of your family and they won’t have to depend on someone. Investing in a good life insurance policy will keep your worries aloof.
And if there any debts, you still need to pay, then life insurance guarantees to bear off your debts. So, be it a personal, property, auto or a credit loan, the insured policy will repay these debts.
Insurer can also use the money to fulfill dreams and plans. One can also start small business, once retired with other benefits from different investment options, which helps you achieve long-term goals. However, don’t forget to read terms and conditions as risk factors might occur.
Life insurance comparisons also helps you to get great profits and deals with vast number of policies available in market. As you invest in these policies and get close to your finishing time, you get the benefits. Therefore, investing in a brilliant life insurance policy helps you in a long run. The earlier you buy it, better is the deal as you get lot of options to choose from which are affordable and beneficial for you.
Also under Section 10 (D) of the Income Tax Act, you also become eligible and can expect tax savings with your insurance policies. The maximum tax deduction of R. 1.5 lakh is the eligibility criteria as per Section 80 (C)
Well, there are certain cons too attached to it. If you are thinking to invest in a Life Insurance. You will be draining all you cash to pay premiums of your insurance. Unlike life insurance, term life insurance does not provide cash value and do not have any investment component. However, you may think of investing in Term Life Insurance with the sense that you will be paying more premiums in exchange to large death benefits.
Henceforth, do the complete market analysis and comparison before buying a life insurance.