ADEQUATE LIFE INSURANCE COVER ESSENTIAL AT ALL TIMES! The best time to buy high-value life Insurance is on or before 31 March 2023
In today's fast-paced world, life insurance is more important than ever before. We face different challenges, and stress is a common factor. In current times, with the medical facilities getting better and as a result life expectancy improving over the past decades in India, we can expect a long retirement where we might have to incur expenses of rising medical costs, day to day expenses, travel, etc.
Thus, an adequate Life Cover and the cushion of regular income are required at all times and in all life stages. A life insurance policy is essential and usually provides protection against the following.
A Life Insurance Policy can safeguard against:
- Protection Against Uncertainties: Life is unpredictable, and there are various risks and uncertainties that can pose a threat to an individual's financial security. Life insurance provides a safety net for individuals and their families in the event of an untimely death or disability, ensuring that their financial needs are met.
- Rising Healthcare Costs: Healthcare costs are on the rise, and even a minor illness or injury can result in significant expenses. Life insurance policies with critical illness riders can provide financial assistance for medical expenses, ensuring that individuals can receive the best possible medical care without worrying about the costs.
- Protection Against Loans and Debts: In today's world, individuals often take on loans and debts for various purposes like education, home, or car loans. Life insurance policies can protect against such liabilities and ensure that the family members are not burdened with debts in case of the untimely death of the borrower.
Adequate life insurance can give benefits such as:
- Future Planning: Life insurance can serve as a tool for future planning, such as saving for retirement or ensuring that the children's education needs are met. It can also provide a source of regular income for the family in case of the primary breadwinner's death.
- Protection Against Financial Loss: Life insurance gives a safety net for your loved ones/family in the event of your untimely death. The insurance payout can help cover living expenses, debts, and other financial obligations.
- Tax Benefits: Life insurance policies also offer tax benefits u/s Section 80C & Section 10(10D) of the Income Tax Act, 1961 making it an attractive investment option for individuals looking to save on taxes.
- Savings and Investment: Life insurance policies can also serve as a long-term savings and investment option, helping individuals build wealth over time while also providing protection.
- Loans Against Policy: Some life insurance policies also offer the option of taking loans against the policy, providing liquidity during emergencies or unforeseen circumstances.
- Retirement Planning: Retirement planning is becoming increasingly important in India as people live longer and need to plan for a longer retirement period. Life insurance policies can help individuals plan for their retirement by providing annuity or pension options.
- Peace of Mind: Having adequate life insurance cover can provide peace of mind, knowing that your loved ones/ family will be financially protected and can maintain their current lifestyle in the event of your unexpected death.
- Coverage Flexibility: Life insurance policies can be tailored to meet your specific needs and can offer flexible coverage options, including term life insurance, whole life insurance, and universal life insurance.
- Lower Premiums at Younger Ages: Life insurance premiums tend to be lower for younger individuals, so it's important to secure coverage as early as possible to lock in lower rates.
Guaranteed Income Plans - For Life Cover and Regular Income
Having adequate life cover along with regular income is a great combination, especially in the retirement years. Guaranteed Income plans are a great option in this category. In the Budget 2023, as announced, that, Income from insurance policies (other than ULIPs) with an aggregate premium of over 5 lakhs will be taxable from 1st April 2023 onwards.The death benefit remains unchanged.
Therefore the best time to buy Guaranteed Income Plans is before 31 March 2023, when the individual can benefit from all Advantages of Guaranteed Income Plans and availing the maximum Tax benefit.
