Don’t leave your family without any financial backup.
Buying a life insurance policy can seem like a huge deal; it’s not like buying a car insurance or health insurance, which are typically more focused on ensuring you receive coverage in the event of an accident or serious illness. Life insurance, on the other hand, provides coverage in the event of death – something we all hope will never happen to us or our loved ones. Though it’s important to realise that life insurance isn’t just about death – it’s also about planning and making sure your family and loved ones aren’t left in dire financial straits if you were to die tomorrow.
1) Life Insurance Has Income Tax Benefits
Life insurance policy proceeds are not subject to income tax in most states. This means that if you have a policy of Rs. 5,00,000, you can leave your beneficiaries (your spouse, children, etc.) that full amount without having to pay any taxes on your death.
Also, if you’re named as a beneficiary in someone else’s policy—such as one set up for his or her children—you could receive an income that is tax-free.
2) Life Insurance Can Help Your Family Get Out of Debt
If you pass away, your dependents receive a sum of money that they can use to pay off debts or take care of funeral costs.
This life insurance policy could prevent them from having to file for bankruptcy. In addition, depending on your policy, beneficiaries might also receive additional monetary benefits such as income replacement until they find another source of income.
3) Death Happens Unexpectedly – Ensure Financial Stability
No one likes thinking about dying, but that doesn’t mean you shouldn’t plan for it. Life insurance makes sure that your loved ones have money to pay for final expenses like funeral costs including custom headstone design or medical bills, cover other debts (like a mortgage), or keep a business running smoothly. It can even help pay off student loans.
4) Women Are More Likely to Die Young Than Men
Life expectancy for women in India is 68 years compared to 61 years for men. So, while you’re saving up for your daughter’s wedding or your son’s education, consider that he might not need as much support as she will.
Buying a life insurance policy may help ensure that both of your children can afford to get married on time, pursue higher education, and get settled into independent lives after marriage.
5) You Have No Control Over Who Will Die First
This means that if your partner dies before you, your children will have to pay off their debts. It also means that if you die early, your family may not have sufficient funds to support themselves after losing a breadwinner. Given these harsh realities of life, it makes sense to be financially prepared by purchasing a life insurance policy. You don’t want your children—or yourself—to suffer because of a lack of planning.
6) Life Insurance Is Affordable
A term-life plan can be purchased for as little as Rs. 10,000. This means that you can protect your family’s future finances even if you’re working with a tight budget—you don’t need to save up any money before purchasing a policy.
Compare that with other forms of protection like health insurance, where you may have to pay a significant upfront cost for coverage.
7) Most People Do Not Have Enough Life Insurance Coverage
Have you ever stopped to consider just how much death could affect your family if you were no longer there to help provide for them?
Unfortunately, many of us have not—and as a result, most people do not have enough life insurance coverage. This makes sense from an emotional standpoint, but when you think about what could happen without that extra coverage, it’s a clear mistake.
8) Paying For Expensive Medical Treatments
Many Indians are not aware that a life insurance policy can be used to help pay for medical treatments. By purchasing an endowment plan, you can set aside a lump sum of money to provide coverage for a certain period.
For example, if you have 5 lakhs (500,000 rupees) in your policy’s endowment account when you pass away your family will receive 2,000 rupees per month for 10 years—which could help pay for any number of expensive medical treatments.
Canara HSBC Life Insurance believes in providing peace of mind to our customers, which is why we offer a range of insurance products that can protect you and your loved ones against the uncertainties of life. Canara HSBC Life Insurance policies are designed to be flexible so that they can suit your individual needs, and we are alway transparent about what’s covered and what’s not so that you know exactly what you’re getting for your money.
Canara HSBC Life Insurance offers life insurance, critical illness insurance, trauma insurance, funeral insurance, and even pet insurance so whether it’s protecting your family against losing their main source of income or ensuring that your dog has a happy afterlife, we’ve got you covered!
Conclusion
Life insurance helps protect your family when you’re gone by giving them financial stability and paying out a lump sum in the event of your death, though it’s important to choose the right policy and company to ensure that your investment provides real value. The above eight reasons make for why life insurance is important and how it provides financial stability, something you must know to make an informed decision for your and your family’s future.
And in case you need our help here, feel free to contact us right away.
Good luck!
