Importance of Life Insurance

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In today's world of uncertainty after pandemic situation of Corona, awareness of life insurance has increased drastically as large number  of families have suffered a lot after demise of their loved ones. They have experienced huge and sudden financial loss during Corona. Let us understand what is life insurance and it's importance in human life


The term life insurance means simply an agreement or legal document between a person and Insurer company for accepting responsibilty of his family members in case of any uncertainty like death, permanent disability,loss of income due to any unforeseen event in a person's life. Death is the ultimate truth which no one can deny. As that of in case of any consumable product there is manufacturing and expiry date mentioned on its cover, we know our birthdate but we don't know when we are going to die. Importance of Life Insurance is well explained in the following quote👇

Following are the reasons to choose life insurance as financial planning part

1) Protection against unforseen emergencies
The main feature of life insurance policy is to protect policyholder and his family members against unfortunate event happening in the life of policyholder.
2) Financial back up for certain long term goals
Life insurance policy helps in fulfilling long term goals in individuals life such as child education, child marriage etc.
3) Disciplined and compulsory saving.
The policyholder become responsible for his family member's welfare and saves some part of his income for policy renewal premium. Saving habit is developed for future life needs.
4) Retirement Planning
The policy holder can make provision of money for his retirement life needs. 
5)Wealth creation and easy liquidity
Some life insurance policies provide fixed guaranteed payouts between policy period which becomes helpful to meet mid term requirements of policyholder.
6) Income Tax Rebates
All life insurance policies gives rebate on taxable income under section 80 (C) and all maturity amount will be transferred in policy holder's bank account under section 10 (10D).


Summary of the Blog "Life insurance"
Life insurance policy is must buy product for every earning individual as he is a source of bread earner for his family. Start taking policies in early age as with increasing age the insurance premium also increase due to high risk. Be Insured and enjoy life tension free.

Image credit:-- canarahsbc, financial express, inspirational quotes and outlook money

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