Life insurance is a mutual contract between the policyholder and the insurance company, where the company promises to pay a sum of money to the nominee (if something happens to the policyholder) in return for a premium.
Apart from financial protection, people are attracted to life insurance as it is eligible to get tax deductions under Section 10(10D) & Section 80C of the Income Tax Act, 1961. To know more about life insurance, let's move on to the best life insurance plans in India.
Benefits of Life Insurance
We all know that life is unpredictable and such uncertainties can cause problems for individuals and his/her family at any time. So, availing a life insurance policy will make sure that your family and dependents can easily enjoy and can maintain their standard of living in case of any unwanted emergencies. There are several benefits that life insurance offers to the policyholders. Let's have a look at the most significant ones.
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On the subject of planning for retirement, there are few units as powerful as a life insurance policy. Due to the fact that you will be saving money over a period of time, life coverage policies will help in supplying a steady source of profits after your retirement.
Folks that avail life insurance could have the choice of availing a mortgage towards their insurance coverage that may help them meet their unplanned life degree requirements without hampering the advantages supplied by means of the policy they've purchased.
Along with financial support, it also serves as a long term investment option. Many conventional life insurance plans, such as traditional endowment plans offer specific maturity benefits via multiple product options like maturity values, cash values, money-back, etc.
Traditional life insurance policies provide clients with the possibility to participate in the monetary boom of the insurance company while taking no funding threat in any way. At the same time as the policyholder breaks up the funding earnings through yearly announcements of bonus/dividends, the policyholder will earn maturity benefits.
Life insurance offers appealing tax benefits and helps you save an extensive sum of money. Almost all the Life Insurance policies offer you the benefit of the tax deduction on payment of premiums and also provide tax-free Sum Assured under Section 80C and 10(10)D of the Income Tax Act, 1961 respectively.
In life insurance, the policyholder is required to make a set periodical payment. It enables the policyholder to inculcate the addiction to financial savings. Saving cash over a lengthy time frame enables in building a very good corpus with a view in meeting your economic necessities at unique levels of existence.