Cover for life
Insurance provides a life cover to the insured to the extent of the sum assured. This gives financial security for the family of the insured in case of any eventuality.
Steady investment
Life Insurance is an investment option that gives significant returns for the premiums that are paid during the tenure of the policy. Some of the insurance plans give a considerable return for your investment which will not only help you to fulfill your investment goals, but will also keep your family financially secure in case of any eventuality.
Income assured by way of annuities
Annuity plan could be the best retirement plan because you get steady income by way of annuities. This will work as a pension for persons who do not have the benefit of pension.
High returns for low cost
For the nominal premium that is paid the insurance policies fetch you very significant returns. In the case of term plans the returns could be almost 10 times the amount of premium that is paid during the term of the policy. No other instrument in the market will fetch you such high returns.
Tax benefit
You can avail a tax benefit for the premiums that are being paid towards the insurance policy under Section 80C of the Income Tax Act 1961.
Riders
Riders like critical illness, permanent disability due to an accident, hospital cash are some of the added covers that can be bought along with the base plan. For an additional premium, these covers can be bought which will eventually be of benefit if you encounter any of these events in the future.
Planning for Goals
There are certain goals you set for your life. It could be the wedding of your children, the education of your children, and so on. The nominal investments made by way of premium towards the Life Insurance policy will not only protect your family against any eventuality or loss of income but will also enable you to fulfil your goals with the significant returns that you get on the maturity of the policy.
Availability of loan
There is an option to avail loan up to the surrender value of the insurance policy. Most of the policies offer this benefit. So, in case of emergency, you can avail a loan to the extent of 95% or the surrender value from any bank/financial institution. The surrender value of the policy can be obtained from your service provider.
