There are a number of benefits associated with the life insurance policies. They are:
- One needs life insurance as a backup incase of any eventualities, whatsoever. They are the major risk covers, one can opt for.
- To take care of basic elements like food clothing, mortgage and loan repayments etc, in case of the demise of the wage earner in the family.
- To take care of post retirement phase in ones life.
- In simple words, Life Insurance policies take care of accident, illness, theft, natural disasters and many more
Life Insurance policies have a number of roles and functions to take care of other than the above mentioned. Some of the most popular ones are:
- Function of Investment - Life Insurance policies are excellent investment options one could opt for. Besides yielding better promising results than the other investment options, these are also equipped to offer bonuses and incentives, to the insured by the insurer/company
- Risk Coverage - Life Insurance policies offer risk coverage like no one else. Besides accident coverage, these policies are equipped to take care of all other unforeseen circumstances as well. Drop in income, disability, natural disaster, retirement… the list in this variety is endless.
- Tax Planning - Life insurance products acts as great tax planning methods as well. According to the various government laws, especially the Income Tax Act of 1961, an individual is permitted a rebate of 20% on the premium payable n his/ her life. This is also applicable in the case of his/ her adult children as well.
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