Finance and Law

8 Facts About Life Insurance You 100% Need to Know

Life insurance, as the name suggests, is a type of insurance that provides financial aid to the policyholder’s family, in case he/she dies. The policy not only offers protection benefits but offers several other benefits too. Besides, if you are planning to buy a life insurance anytime soon, then here are certain facts about life insurance that you need to know, have a look –

It provides tax benefits


Life insurance is a tax saving tool. You can get tax benefits on premium paid towards life insurance. Also, you can claim a tax deduction of up to Rs. 1.5 Lakh as per the section 80C of the Income Tax Act, 1961.

It comes with investment benefits


This is also one of the most important things that you need to know about life insurance. Life insurance also comes with investment options. Products such as ULIPS offer the advantages of both an insurance cover as well as investment option in the markets.

It helps in creating wealth


A life insurance policy also helps you in generating wealth through accumulated gains. An insurance plan not just offers protection from unforeseen events but also helps in gradually creating wealth so that you meet your future financial goals.

It acts as a savings instruments


Life insurance products incentivize savings and restrict consumption expenditure. So, investment-linked insurance plans augment personal savings along with providing life insurance cover.

It offers loan facility


This is yet another best way that helps you meet your financial goals. As it gives you the benefit of taking loans against policy. You can take loan from an insurance company. The interest rate charged by the insurance company basically depends upon the time when a policyholder asks for a loan.

It’s the best instrument for retirement planning


Life insurance provides stability and certainty to your future plans. It guarantees not just a safety cover for unexpected events but also assures a considerable sum in savings as you retire. These savings can be converted into annuity so that one could enjoy pension benefits.

It’s affordable


Life insurance policy is fairly inexpensive. Thus, you can easily buy an adequate life insurance policy online at a reasonable rate. Given its multiple benefits like term insurance cover, investment, and tax benefits, life insurance is the most reasonably priced financial instrument.

It’s good to buy it early


The amount of premium depends on your age and health. Thus, the earlier you’ll buy a life insurance policy, the better it will be. Also, since one can’t predict unforeseen events like death or accident, it is always advisable for responsible people to keep a life insurance cover for the future of their loved ones.

Before buying a life insurance policy, you must know it inside out, so that you are well prepared to buy an insurance that best suits your needs. Besides, if you’re looking to buy a life insurance policy online, then go for Aegon Life; it offers high quality insurance plans at affordable prices.

Hardik Patel

Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 12+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

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