“Life is what happens when you are busy making other plans.”
This quote from the famous English Singer John Lennon says a lot about life. Nowadays, we tend to work or live in a way that makes our lives better. We work incessantly without taking a break, focus on making more money and accumulating hordes of material comforts. Amidst the rush of leading a comfortable life and going through the grind,however, we usually forget what does it feel to be calm and peaceful.
Life is short, and it may not give us hints of when it is going to change course. There are times when you are seemingly in control of things, while at others, these uncertainties take away your peace of mind. To avoid the ebbs, therefore, you need to prepare yourself against any unforeseen circumstances better. This is where insurance plans come into the picture. You need to realize the importance of life insurance plans and how they can help provide financial support to your loved ones in your absence. You do not want your loved ones to tackle a ton of liabilities, especially when you are not around. Without further ado, here is how life insurance online is a crucial addition to your financial planning and one of the best tax saving investment options available in India today.
How is Life Insurance Different from Other Investments?
When you think of investing money as a beginner, you might find several investment avenues to park your money. One of the best choices to start with is buying a life insurance plan. There are term plans that only give death benefit, while retirement plans, which are one of the best long-term investment plans, come with cash value as well. Life insurance plans are different from other investment instruments in several ways.
No Impact of Market Volatility on Returns
In market-linked schemes like ULIPs, you get returns based on the performance on the ups and downs in the market. Depending on the chosen schemes, the risk factor associated with your investment varies. However, the benefits of life insurance plans are not market-linked. The benefits from life insurance online plans are pre-decided at the time of policy roll-out, as defined in your policy document.
Premium Stays Fixed Over the Policy Tenure
One of the main features that attract individuals to buy life insurance online or offline is the fixed rate of premium throughout the policy tenure. Insurance plans from reputable insurers such as Max Life Insurance provide coverage to you and your family against accidental injuries, dismemberment and even death. In case of your untimely demise, your loved ones would receive the insurance benefit timely and without much hassles. To make your life cover more robust, you get the choice of increasing the life cover as and when required.
The returns you get from investing money in diverse financial instruments such as mutual funds are usually taxable. The same is not correct when you buy life insurance online or offline. Life insurance plans are one of the best tax saving investment options that give tax-exemption on the maturity/ insurance benefit.
Benefits of Buying Life Insurance Plans
High Life Risk Cover
Investing in one of the most suitable life insurance plans implies a financially secure future for your family. In case of any untoward happening, the chosen insurance company gives the sum assured to your family. Not just that, some of the best long-term investment plans under the life insurance categoryare meant for retirement planning to ensure people can get a handsome income in their retirement age.
Not having enough funds, especially when you are in desperate need of money, can cause upheavals in life. In such situations, your life insurance plans act as a friend in need. It is because many life insurance companies enable the policyholders to take loans depending on their policy provisions.
Life insurance plans are one of the best tax saving investment options you can choose to reduce your tax liability. The premium you pay while buying life insurance online or offline is eligible to tax deduction under Section 80C of the Income Tax Act 1961.
Certain events in life are unavoidable. The one thing you can do is to stay prepared for them by buying life insurance plans. Also, it is crucial to select life insurance online in a way that it does not affect other financial liabilities negatively.
Aarvi the owner and senior content publisher at Financeclap. Aarvi completed his education in BBA (Bachelor of Business Administration), and recently she was working as an assistant manager for the accounts company. She also works as a senior digital marketing consultant for one IT company in 2018. The main idea for starting Financeclap is to provide the best and helpful information related to the business industry to the readers. Aarvi main hobbies are playing cricket, watching videos and listening to music in the free time. You can learn more about her on about us page.