Sabse Pehle Life Insurance

If you are the primary breadwinner for your family life insurance becomes especially crucial. In such a situation the protection provided by life insurance can help ensure financial security for your dependents. Such dependents include:

Life insurance is a crucial tool for protecting your family’s financial future if you have outstanding debt. Irrespective of whether such outstanding debt is a home loan, personal loan, business loan, etc. the importance of life cover payout cannot be overstressed. By having a life insurance plan in place, you family will be in a better position to handle any outstanding liabilities that might have to be paid off subsequent to your demise.

Due to rising inflation, multi-earner families are now more common than ever before. However, there are still instances in which one parent works while the other looks after the kids or the house.

In such cases life insurance policy is often purchased only for the working spouse. However, this does not account for the contribution that the stay at home parent makes in terms of managing various aspects of the household.
In view of such contributions both tangible or intangible, life insurance policy is also essential for stay-at-home spouse such as housewives .

For entrepreneurs, life insurance is also important from the point of view of business continuity. The life cover payout provided by the policy can be used to pay off outstanding debts such as business loans and ensure the stability of the business if the primary business owner passes away.

If you are planning to leave a legacy for your children, certain life insurance policies, such as whole life insurance and unit linked insurance plans (ULIPs) can be suitable. ULIPs can provide you with long-term capital appreciation along with in-built life cover benefit. On the other hand, a whole life plan provides life cover up to the age of 100 years, which means if you pass away before attaining the age of 100 years, the policy beneficiary will receive the life cover payout as per the various terms and conditions of the life insurance policy. 

Purchasing life insurance at a young age is a smart move for you and your family's financial future even if your current liabilities/responsibilities may be relatively less. Younger individuals tend to be healthier, which means you can lock-in relatively low premiums for your life insurance plan. Buying early also ensures that your life cover continues without any increase in insurance premiums even if any health issues arise later on.

Life is full of uncertainties. In this scenario, life cover or death benefit payout of a life insurance plan is designed to ensure that your family will be financially secure and continue to live a good quality of life even in the face of various unforeseen events. This means, if anything unexpected happens to you, you can rest assured that your family will not have to compromise their present lifestyle, as the life insurance policy payout will help them pay off outstanding loans and manage any other household expenses.

Life insurance not only provides financial protection in the event of unexpected death but can also act as a long-term investment. Depending on your life stage and risk capacity, different types of life insurance plans can help you achieve various financial goals, whether it is saving for children's schooling/higher, marriage, buying your dream home, or planning a comfortable retirement.

Life insurance plans are offered with various riders/add-ons options such as accidental death and dismemberment rider, critical illness and disability rider, waiver of premium rider, etc. These optional add-ons and riders are designed to enhance the protection of the base plan by ensuring financial support for different situation such as accidental death/dismemberment, critical illness/disability, etc.   

Life Insurance plans in India allow policyholders to save taxes under section 80C of the Income Tax Act, 1961, but only if the policyholder has opted for the old tax regime. Premiums paid for life insurance plans are eligible for deduction up to ₹1.5 lakh per year, that can help reduce your taxable income and overall tax outgo. Additionally, the payouts or proceeds from the policy are eligible for tax exemptions under Section 10(10D) of the Income Tax Act, subject to applicable terms and conditions.