Not everyone likes to talk about life insurance but it is one of the most important conversations that you have with your financial advisor. Others might think that it is a scam or simply do not believe in it but it is an important decision for you and your family. Your loved ones can have financial security after you pass away thanks to life insurance.
There are also a lot more financial benefits that you can have while you’re still alive when you have life insurance. It is essential that you talk to your financial advisor about life insurance especially if you’re in India. Having life insurance can help mitigate some financial problems when you pass.
If you want to learn more about the many benefits of life insurance in India, check out the article below.
The Many Benefits of Life Insurance
There are a lot of benefits to acquiring life insurance in India. You have the financial assurance that your family will be secure in your absence.
While that might sound very grim, it is a reality that many of us do not want to hear. There are also many benefits of life insurance even when you’re still alive. One benefit of having life insurance is that it is typically lower in cost.
Many life insurance providers offer you a policy that is very affordable as opposed to many other insurance. It is also very simple to understand as there aren’t a lot of things involved with life insurance.
There are also other life insurance that even provide a savings element such as cash value that you can take out for the time being. Some companies also provide tax advantages as part of their benefits.
Tax-Free Payouts
The fact that life insurance payouts are tax-free is one of its best features. In the event that you have a life insurance policy and you pass away while still within the coverage of the policy, your beneficiaries will immediately receive the money that the company offers as part of the insurance.
Since life insurance payouts are not considered as income, you won’t need to pay tax for it and the best part is that you don’t even have to report the money when you file your income tax returns. Long-term, doing this will enable you to save more money that you can then add to your life insurance payout.
The more you invest in your life insurance, the more coverage you get in the end as well as more amount your family will receive once you pass.
Dependents Will Never Have to Worry About Expenses
Many financial advisors will recommend that you get life insurance as soon as possible for your dependents. Many life insurance policies nowadays can cover different expenses when you’re gone.
This means that they can still pursue their college education with the help of your life insurance policy and they won’t ever need to worry about paying any other expenses for their education.
To find out, all you have to do is for you to talk to your financial advisor about this feature on your selected life insurance policy or if they have one. Your dependents will never have to worry about expenses ever again. They can even live a comfortable life without having to worry about living costs.
Guaranteed Cash Value Growth
When you pay for your life insurance, your policy can help you build a guaranteed cash value that can grow and help meet different goals for you and your family.
You can use your life insurance to supplement your retirement income or pay off a mortgage. You can even use it to protect your existing assets or establish an emergency fund for you and your family.
Having life insurance can help in many different ways apart from when you pass away.
Get Coverage for Chronic Illnesses
There are numerous life insurance providers in India that also offer riders that you can add to your policy to adjust your coverage.
These benefits will allow you access to some medical coverage especially if you have a terminal or chronic illness. In some policies, they will offer you this feature if you have a terminal illness with a life expectancy under 12 months.
You can use this benefit to pay for your medical expenses while you’re still alive so you can enjoy your time with your family to the fullest.
You’ll never have to worry about your medical expenses this time now that you have a life insurance policy that has rider benefits.
Protection Against Rising Health Costs
Speaking of rider benefits, having life insurance can also help you protect against the rising cost of health expenses. There are a lot of policies that offer benefits that protect you from the cost of critical diseases and even hospitalization expenses.
This offer can always be discussed with your life insurance provider during your negotiation stage. Make sure that you open up to your financial advisor when you opt for this benefit.
How to Get More Benefits When Buying Life Insurance
Most life insurance policies are already cost-effective especially if you get them at a young age when you are healthier.
Life insurance companies often give them lower rates for many reasons and some of them include longer life expectancy, less likely to be diagnosed with a serious condition, and can pay premiums for more years than those that are already older.
If you’re not in your twenties anymore, there are still many ways for you to get benefits when buying a life insurance policy. Talk to your financial advisor about accelerated death benefit which helps pay off any needed care if you have a diagnosed terminal illness.
You can also reach out and ask about a disability premium waiver that enables you to stop paying your premium if you have a disability while you can still enjoy the benefits.
How Much Life Insurance Do You Need?
The best way to determine the amount of life insurance you will need to is to understand your lifestyle.
Consider the many risks involved with your current lifestyle about your age. If you are a parent of several children at this early age, consider having life insurance as soon as possible.
You are also more likely in need of life insurance than a 40-year-old who does not have any dependents. This will help your dependents become financially free of any burdens that may come once you pass.
Conclusion
Financial protection is the main advantage of having life insurance. For many, life insurance in India can be difficult to obtain but there are several ways for you to get one.
There are numerous life insurance companies in India that promote their policies to everyone. All you have to do is choose the best one for you!
