Buying life insurance is important for our financial security, still only 10 percent of Indians are insured. Neither of a human being is aware of their life span. Every year plenty of people are passing away unexpectedly because of illness or accident. If passed away person is the sole breadwinner of the family, the family suffers a lot and they are facing lots of difficulties to pay household expenses and maintain their standard of living. So buying LIC policy in early age is always better.family business continuation plans.
Another important benefit of life insurance is that the payments are made directly to your beneficiaries, rather than going through your estate. That means your loved ones could get the money they need faster – usually without any income tax liability.
How much insurance? And what kind? A good rule of thumb is once you become a parent, you should have life-insurance coverage that will last at least until your youngest child completes college. The dollar amount you choose for your policy depends on a number of factors, such as how much income you want to replace, how much debt you have, whether or not you have a mortgage and your long-term financial goals for your family.
We are listing important benefits of LIC Policy
Financial Security for your family
It’s the most important factor of LIC Policy; you can maintain the same lifestyle of your family even if you are no more. The insurance amount will take care of the household expenses. Your children can obtain the same education in your absence with the help of insurance amount.
Paying of Debt: Your family will not worry about any debt in your absence. Since Insurance amount will take care of all the loans like home loan, car loan and credit cards, If you have the right amount of Insurance
LOOKING AFTER YOUR LOVED ONES EVEN AFTER YOU’RE GONE: This is the most important aspect of life insurance that one needs to factor in. Your family is dependent on you even after you’re gone and you certainly don’t want to let them down. Whether it’s for replacing lost income, paying for your child’s education or making sure your spouse get the much-needed financial security, life insurance could save the day for your surviving dependents.
RETIREMENT AND LONG TERM GOAL: LIC is long term saving plan. It helps you to save with discipline, ultimately it helps you to achieve your long term goals such as buying your dream home and plan your peaceful retired life. Lic offering some policies which give the regular amount of return, which you can also plan for your financial goal
DEALING WITH DEBT: You don’t want your family to deal with financial liabilities during a crisis. Any outstanding debt-a home loan, auto loan, personal loan, or a loan on credit cards will be taken care of if you happen to buy the right life insurance policy.
TAX-SAVINGEvery insurance policy is helping you to save tax. You can save tax under the section of 80C. Also, you will get maturity benefits or claim benefit from LIC and it is also totally tax-free.
Earlier is better to buy LIC: Insurance business runs to handle uncertainties. When you are young, you are healthy and with less financial responsibilities. However as you grow old, it may happen then you may face some illness and in that case insurance company will charge you higher to buy the same insurance plan. Also at an early age premium paying amount is also less.