A life insurance plan is a contract between an insurance policyholder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium after a set period or upon the death of an insured person. Life insurance offers you and your family financial protection.
Benefits of life insurance.
Life insurance protects your family members’ financial interests in your absence. It gives you peace of mind and confidence and helps you save taxes. There are several Let us take a look at some of them:
Financial security: Life insurance products can provide you and your loved ones with financial security. You can financially secure your family by choosing a substantial life cover so that they can maintain their standard of living in your absence
Tax savings: Life insurance plans offer many tax` benefits to facilitate better savings. The premiums paid are tax` deductible under Section 80C and 80D of the Income Tax Act, 1961. The maturity benefits also enjoy a tax-free` status under Section 10(10D) in most cases
Wealth creation: These plans help you create wealth over time and build savings. Life insurance plans can be used to save for your future needs. They offer options to cover different types of risks and goals
Retirement planning: Life insurance products like savings plans, endowment plans annuity plans, and other help you build a retirement pool. These plans offer guaranteed income on maturity and help you secure your retirement with adequate savings
Death Benefit : In the unfortunate event of the death of the policyholder , the nominee receives the entire amount sum assured amount. The amount received can be used for any reasons to cover their expenses.
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