Nowadays, the number of investment plans available today are many, but the most important one is life insurance. Some people think that they should take a life insurance cover when they grow old, which is wrong. Savings plans and bank deposits are the other options available for investment. Life insurance cover can be used to fund other financial obligations, and it also provides security for your loved ones in case a need arises. There are many reasons why you get a life insurance cover now.
Financial security is a prime and vital aspect because, in the case of death, your family is protected. It is hard to predict the future, not to mention the many untimely deaths being reported every year. You are expected to make sure that even after you are gone, your family is fully covered. Insurance plans can offer this kind of security through various methods like your children expenses, income substitution that is lost when you depart.
You future goals can be accomplished using a life insurance cover. When you set and plan on a goal, you must decide the amount of money needed to achieve that goal. You can get some assurance from insurance policies when it comes to funding in some untimely scenarios.
Using life insurance, you can receive a standard flow of income. When you invest in an insurance plan, you are assured of a regular income during retirement. It is difficult to predict the working life of a person especially now that we are all faced with issues and threats such as sicknesses or companys’ burnout. A person’s retirement period can be long compared to the working period that is why it is vital to gather up all one can during the working period so that they can enjoy their retirement. Spending and planning on an annuity can help you to achieve this.
After buying a life cover, you get many tax benefits like maturity benefits that are not taxable and also the premium payable can be removed when calculating taxes with the regular income tax act.
As you can see there are several advantages of purchasing a life insurance policy such as saving, investments and financial security. You may want to consider taking one at your early age. Everybody needs a life insurance even before the need to use it arises. If a person is the sole bread winner in a family they should be insured.
If you are a working spouse you need to take a life insurance cover.