Money saved through insurance provides guaranteed security of full risk coverage post-demise of the insured person. Not just this, in case of death, life insurance assures of full amount of policy (with bonus, in case of with-benefit policies), whereas in other saving instruments, only the actual amount saved is returned with interest. Apart from this, riders available with the plan assure extra insurance amount in case of serious illness or disability.
As money can be paid in easy installments over time, life insurance encourages prosperity and gives opportunities for long term savings.
A loan can be taken easily against a life insurance policy (provided it has reached the sufficient valuation). Apart from this, a life insurance policy is also acceptable as a guarantee towards a business loan.
Life insurance is also the best instrument for saving income tax and wealth tax. As per Income Tax Act 1961, the premium amounts are exempt conditionally as per existing income tax rates.
By procuring the right life insurance policy, time-to-time financial needs can be fulfilled.
Children’s education, setting up a household or marriage expenses or any other specific expenses can be managed through appropriate policies.
Apart from this, the money accrued through a policy can also be utilized for constructing a home post retirement or other needs or investing elsewhere.
If someone relies on you for their expenses, you should rely on life insurance. In other words, if you have dependents, you should purchase life insurance.
These dependents can be anyone – your parents or spouse or children. These are the people who can face financial problems in case of your untimely death.
Please remember that there is no age limit to getting insurance- if you have dependents, you need insurance, whether you are 20 or 50 years of age.
An average Indian family usually gets insurance for Rs. 1 to 2 lacs. If you are the chief earner of your family, ask yourself whether this amount is sufficient for your family’s needs. Your answer is likely to be negative. Then how much insurance should you procure? A simple formula is to get insurance that’s at least six times your annual income. Of course, more would be even better. More often than not, this amount comes handy for your family in case of emergencies, and helps them gain self sufficiency. To get related advice and to know how much insurance is advisable for you, you can contact your Sahara India Life Insurance’s Insurance Advisor.
“Remember, while insurance is not the answer to every problem, it is certainly a solution to financial problems being faced to some extent.”
Note: There are various Sahara India Life Insurance products providing different benefits. Please contact your nearest Sahara Life office or insurance advisor.