Life insurance provides financial protection against various contingencies linked to human life, such as death, disability, accidents, and retirement. Human life is vulnerable to both natural and accidental risks, which can lead to the loss of income for a household
While it's challenging to assign a precise value to human life, it's possible to estimate a monetary sum based on the potential loss of future income
Life insurance products offer a specific sum of money in the event of the insured person's death within the policy's term or if they become disabled due to an accident. This financial support provides reassurance that families will have a safety net to rely on during difficult times
Life insurance holds significant importance due to its role in providing financial security and protection to individuals and their families. Here are several reasons why life insurance policies are crucial:
a. Income Replacement: In many Indian households, a primary breadwinner supports the family financially. If that individual were to pass away unexpectedly, it could lead to financial instability for the family. Life insurance ensures that the family continues to receive financial support through the payout of the death benefit
b. Debt and Liability Coverage: Life insurance can help cover outstanding debts, such as mortgages, loans, and credit card balances, preventing the burden of repayment from falling on the family after the insured's demise
c. Education and Future Planning: Life insurance can secure the future education of children and their overall financial well-being. The death benefit can be used to fund higher education expenses and other long-term goals
d. Tax Benefits: Life insurance policies often offer tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, making them an attractive investment option for individuals seeking to save on taxes while securing your family's financial future
e. Savings and Investment: Certain life insurance policies, such as whole life or endowment plans, combine insurance with a savings or investment component. This can serve as a disciplined way to save money and accumulate wealth over time
f. Retirement Planning: Annuity-based life insurance policies can provide a regular stream of income during retirement, helping policyholders maintain thestandard of living when you are no longer earning a salary
g. Healthcare Expenses: Some life insurance policies offer critical illness or terminal illness riders that provide financial assistance if the insured is diagnosed with a severe medical condition. This can help cover medical expenses and maintain the family's financial stability
h. Estate Planning: Life insurance can also play a role in estate planning, helping individuals distribute the assets among heirs and beneficiaries
Team Avenir offers families a sense of security and tranquillity by guiding them to invest in Life Insurance, enabling them to reap the advantageous rewards that such investments provide
