"Insurance is fundamental and indispensable for a sound financial plan."
How often have you thought about getting insurance? We are sure it is far more than our fingers can count but have you turned your thought into action yet? Well, if your answer is no, you have come to the right place! Today we are going to tell you things you SHOULD know about life insurance.
Picture Courtesy - Forbes
Thinking about life insurance can be disturbing but essential to protect your family to deal with untimely catastrophes. If you are the sole breadwinner for your family, life insurance can be helpful to offset your lost income. Here are 7 things you must know about a life insurance policy -
1. It Supports Your Family With Your Final Expenses -
Permanent life insurance is fundamental and indispensable for a sound financial plan. With the radical shift of uncertainty in our lives, it has become a crucial safety measure for us. The obligatory burden of a person’s last rites lays in his family. The funeral can easily turn into lakhs of unpaid bills on your family. Insurance can save your family from any additional financial burden in addition to the emotional trauma.
2. It Covers Your Family’s Crucial Expenses After You -
What are the odds of a misfortune anyway? Well, the odds today are much higher than it was a few decades back and it is always wiser to opt for a backup and save yourself and your family from the misery. Like most of the fathers, you will want to be sure if your kids are well taken care of. Their quality education should not come at stake in your absence and hence an additional coverage is an absolute must-have.
3. It Compensates For Your Income -
Misfortune is often uncalled. Your sudden demise may lead your family to a lot more than emotional breakdown. To keep the household running as smooth, your income would need a replacement which is integral for your family’s lifestyle and other necessities.
4. It Will Saves Your Loved Ones From Any Liabilities After You -
In addition, to make a living out of the cover, your family may need the insurance to clear your debts to be in business or mortgage. This will assure a roof to your family in any worst-case scenario and stay solvent.
5. It Will Helps Your Family To Pay Off The Estate Taxes -
Estate Tax a.k.a Property Tax can be quite steep and having insurance beforehand can help your family in paying the essentials which would save your property from getting jeopardized. Permanent insurance has our major shout outs when it comes to coverage of large estates as this coverage lasts for a lifetime.
6. It Will Cover Cushion Your Loved Ones In Your Absence -
Nothing can make up for your absence but a financial cushion will avoid any additional burde
n over your family when you aren’t around. Insurances that can save you from heavy loss or damages without cutting your pockets as hard are a wise investment and not a risk. It is considered as a prime safety measure in general.
7. Life Insurance Tax Benefits-
“Life Insurance - it's better to be 5 years too early, than 5 minutes too late.”
Insurance can get you more than that. Investing in insurances can give you some relief in tax while filing for an ITR i.e Income Tax Returns. So now that you know the epitome importance of having an insurance and what type of insurance suits you, it is time for you to make a wise call today. All the best!
When Should You Consider Buying An Insurance?
So now that you are convinced to get insurance for yourself, the big question is WHEN! Life is uncertain and dealing with this uncertainty gets difficult sometimes. Hence it is wiser to be prepared for the worse. The earlier you opt for life insurance the safer you would feel.
Failing health can make one helpless but it must never make someone bankrupt. Here are three things you should consider before buying a Life Insurance -
• Needs: Generally elderly with chronic health conditions require more coverage than the elderly. Before opting for insurance, make sure you go for a copay and low deductible cover. Visit SBIS India to find a suitable plan for yourself.
• Doctors: The first and foremost question before buying a cover is if your current physician is allowed under the claiming clause.
• Cost: Know what you can afford and opt accordingly as higher deductibles and copay will help you save more on your premium.
There are indefinite options when it comes to buying Life Insurance. Make sure you scrutinize every aspect of your financial and personal life and do a detailed R&D before finalizing one. You will also have to choose between the necessary and the superfluous insurance. Why choose? Because it is good to be covered but being too covered can take away your money from emergency funds or a retirement saving plan.