Saturday, May 25, 2024

The Imperative Role of Life Insurance in Your Financial Plan

The Imperative Role of Life Insurance in Your Financial Plan

Do you know that between 2023 and 2027, the market for insurance plans is expected to grow by 12%? Well, life is enjoyable until unexpected events throw a curveball in this beautiful journey. While predicting the future is impossible for you or anyone else, being prepared for it is in your hands.

One crucial tool in this preparation is life insurance. It’s more than just about securing your loved ones’ future. Such insurance plans are a great way of weaving a safety net for your own financial well-being too. Let’s figure out how.

How to Choose the Right Insurance Policy for Yourself?

Consider life insurance as an umbrella keeping you safe from life’s unpredictable showers. While there are several options to explore, choosing the right policy becomes a bit tricky. Here is a quick guide to help you find a suitable life insurance policy:

  • Identify your Needs: Your financial needs come first. Assess your financial goals, consider your dependents and risk tolerance. 
  • Compare Plans: Research and compare different insurance plans offered by various insurers. While doing so, consider factors like coverage amount, premiums, and benefits. 
  • Choose Plan as per Budget: Choose a plan that aligns with your financial situation. Make sure the plan is affordable without compromising on the coverage it provides.

Advantages of Life Insurance Policy

When you avail of an insurance plan, it offers more benefits rather than just acting as an investment. Here are some of the benefits mentioned in detail for you to explore:

  • Plans for Different Stages of Life

Life insurance policies can be used for different stages of life. For instance, term and critical illness plans help secure your financial safety, while child plans assist with your child’s financial goals. 

Moreover, ULIPs and guaranteed plans help in saving for retirement or other long-term goals. Pension plans and guaranteed income plans also provide reliable long-term pensions after retirement.

  • Critical Illness Rider Benefits

You can purchase critical illness health insurance separately or add it as a rider benefit to your existing life insurance policy. Upon diagnosis of illnesses such as cancer, heart failure, and renal failure, this insurance provides a lump sum benefit.

  • Loan Facility

Endowment, money-back, and whole life plans are examples of investment life insurance plans that help accumulate cash value over time. While they are usually long-term investments, you can borrow against the cash value. You can also use a part of the lump sum and continue your investment towards the planned goal.

  • Wealth Building

Purchasing an insurance policy is fruitful when you select the most suitable plan for your needs. However, if you are considering building wealth, your timing must be calculated because life insurance offers an ideal opportunity to maximise your wealth over time. Unit-linked insurance Plans (ULIPs) are also considered among the best investment options for wealth accumulation.

  • Tax Benefits

Investing in an insurance policy can reduce your taxable income by up to Rs. 1.5 lakhs in a financial year under section 80C of the Income Tax Act. Though your funds and maturity value received from life insurance plans are tax-free, they are subject to a minimum lock-in period. Ensure that your policy adheres to the necessary terms and conditions to avail of these tax benefits.

Protect for Your Financial Future Today!

A life insurance policy offers security and stability for you and your loved ones. Just as it is important to understand the policy’s advantages, you must choose the right plan that suits your needs. In such cases, a reliable insurance provider like Canara HSBC Life Insurance is who you need to assist you.

Whether you select their whole life Young Term Plan or iSelect Guaranteed Future Plus, every detail of their benefits is available on their official website. By visiting their website, you can select any suitable online life insurance policy and pay for them. With IRDAI certification, they stand out as a reliable, trustworthy, and credible insurance provider. 

So, take the first step towards a better future and shop your policy plan from Canara HSBC Life Insurance today!

Interesting Related Article: “Things to Consider Before Signing Up for a Life Insurance Policy“

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By: Stephanie Ross
Title: The Imperative Role of Life Insurance in Your Financial Plan
Sourced From:
Published Date: Sat, 20 Apr 2024 16:10:31 +0000

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