pros of life insurance coverage
DESCRIPTION
Life Insurance Life Insurance is a vital shield required to protect the family from financial crisis due to an untimely death of the bread earner. Every person now-a-days is looking for a life insurance coverage and there are many competitive life insurance coverage providers in the market. As every coin has two sides, every product has its merits as well as demerits. We should be knowing each aspect whether good or bad before going for a product, to make a wise choice. Life insurance coverage also have its pros and cons. Let’s take a look on that: Pros: There are lots of merits for life insurance shield and these are: Protection against uncertainty: This is in fact, the most important merit out of which most of us needs life insurance. Life insurance coverage provides a financial protection against untimely death to the family members so that their livelihood would not be affected. The amount of insurance will be delivered to the nominee at the time of an unfortunate demise of the insured. Relief from Stress: There is always in our mind that what will happen to our family members after us? How they’ll survive? How they’ll earn their livelihood? What will happen to our children’s education? And many more. Getting a life insurance will itself solve this problem and resolve the undue stress. Tax Relief: One gets Tax deduction on the premium paid by insured under Section 80 C and Tax exemption benefit on maturity amount under Section 10(10D) of Income tax act 1961. Growth of capital: In case you have taken an investment policy under life insurance, you’ll get a tremendous capital appreciation along with financial protection. Facility of taking loan: If you need an urgent cash and you don’t have any collateral security to take loan, you can definitely have it by mortgaging your life insurance cover. On life insurance policy you can have a loan but the title of policy will be transferred to the loan provider. Increasing habit of “Thrift”: Through life insurance cover, one gets an increasing habit to save money, which will definitely going to help the person in his retirement age. Flexible: Life insurance cover is very flexible as you can increase or decrease the amount of premium any time you need, you can even increase or decrease the amount of insurance any time you want to and also you can change the maturity dates as per your convenience at any point of time.TRANSCRIPT
Pros of Life Insurance Coverage
Life Insurance Pros
There are lots of merits for life insurance shield and these are
Protection against uncertainty
Relief from Stress
Tax Relief
Growth of capital
Facility of taking loan
Increasing habit of “Thrift”
Flexible
Protection against uncertainty
This is in fact, the most important merit out of which most of us needs life insurance. Life insurance coverage provides a financial protection against untimely death to the family members so that their livelihood would not be affected. The amount of insurance will be delivered to the nominee at the time of an unfortunate demise of the insured.
Relief from Stress
There is always in our mind that what will happen to our family members after us? How they’ll survive? How they’ll earn their livelihood? What will happen to our children’s education? And many more. Getting a life insurance will itself solve this problem and resolve the undue stress.
Tax Relief
One gets Tax deduction on the premium paid by insured under Section 80 C and Tax exemption benefit on maturity amount under Section 10(10D) of Income tax act 1961.
Growth of capital
In case you have taken an investment policy under life insurance, you’ll get a tremendous capital appreciation along with financial protection.
Facility of taking loan
If you need an urgent cash and you don’t have any collateral security to take loan, you can definitely have it by mortgaging your life insurance cover. On life insurance policy you can have a loan but the title of policy will be transferred to the loan provider.
Increasing habit of “Thrift”
Through life insurance cover, one gets an increasing habit to save money, which will definitely going to help the person in his retirement age.
Flexible
Life insurance cover is very flexible as you can increase or decrease the amount of premium any time you need, you can even increase or decrease the amount of insurance any time you want to and also you can change the maturity dates as per your convenience at any point of time.
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