Another mistake that people often make is, buying insurance from friends and family. Which could be even worse than buying it from an insurance agent. Every time your friend or relative has to reach their target, they’ll know who to approach. You’ll be stuck with paying premiums for policies you may not even want. You are paying those premiums with your hard earned money. You can use that same money elsewhere, and even profit from it. Use your money to work for you, not the other way round.<\/p>\n
Insurance has to be bought for the right reasons. It is a very important financial tool and your financial kitty would be incomplete without it. Parents work so hard to make their children’s life easier, so that their children do not have to slog later.<\/p>\n
Everything is becoming so expensive, that planning ahead is very important to reach your goals. Specially if you have a lot of people dependent on you. ‘Life is uncertain’ is a fact, no one can change it. So it always better to have your loop holes covered, before you come to that stage. It’s hard enough your family has to suffer the loss of your life, but don’t put a financial burden on them too. Life insurance policies are not only meant for covering the loss of your life but you can also cover the financial loss of any goal too.<\/p>\n
Let us now look at some reasons why you need insurance, some of them might even surprise you. Here goes:<\/h4>\n1. Basic Cover For Your Financial Loss :<\/h3>\n<\/div>\n![\"basic\"](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/basic.jpg\")
<\/a><\/div>\nThis is one of the most common reasons why you need insurance, to cover your financial loss. Your family will be so devastated at the time of your death, that they will not be able to think straight. This insurance cover will help them get back on their feet and also cover the immediate expenses that come along the way. This way, you can save your family the trouble of not worrying about their financial needs.<\/p>\n
2. Tax Benefits:<\/strong><\/h3>\n<\/div>\n![\"Tax](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/tax-saving-copy-1024x656.jpg\")
<\/a><\/div>\n<\/div>\nSome people buy insurance to obtain the tax deductions available to them. The best thing about life insurance is that their maturity claim as well as the death claim are both tax free. Even the premium amount is available for deduction under section 80C. The premium claimed can be, up to a maximum amount of Rs. 150000\/-, since that is the limit under section 80C. \u00a0After having said that, do not buy any insurance just to claim this deduction. If you are going to buy insurance for this reason, then you might as well buy a policy that will attend to your needs.<\/p>\n
3. Financing Your Debt:<\/strong><\/h3>\n<\/div>\n![\"Debt\"](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/Debt.jpg\")
<\/a><\/div>\n<\/div>\nNow I’m sure you do not want your family to carry the burden of paying off your liabilities. So if you have got your other goals covered through various investments, then get your liabilities covered through insurance. For example, you’ve taken a house loan, and you still have half the amount to pay back, take an insurance cover for that amount, so even if you are not there, your family will have the finances to pay off the loan.<\/p>\n
Must Read: Why Should You Start Investing Early In The Life Insurance?<\/a><\/p>\n4. Sort Your Education And Retirement:<\/strong><\/h3>\n<\/div>\n![\"Education-or-retirement\"](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/Education-or-retirement.jpg\")
<\/a><\/div>\n<\/div>\nLife insurance just doesn’t mean insurance for your life only. It also provides cover for your income. For retirement, annuity is a very good option to consider. After investing in an annuity, you will receive a regular income till your survival. So if you haven’t considered this option, I think it’s time you do.<\/p>\n
As for your education, there are education plans offered by the insurance companies for your children, so that in case of an unfortunate event, your child’s education will not be compromised in the bargain.<\/p>\n
5. Earlier The Cheaper:<\/strong><\/h3>\n<\/div>\n![\"Because-cheaper\"](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/Because-cheaper.jpg\")
<\/div>\nThe earlier you buy a life insurance cover, the cheaper it is for you. While you are still young, there is a very low chance of you getting diagnosed with various diseases. So it’s always better to take insurance earlier, so you do not have to spend much when it comes to premium payment, it will be affordable.<\/p>\n
6. Insure Your Business:<\/strong><\/h3>\n<\/div>\n![\"Insure](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/insure-copy.jpg\")
<\/a><\/div>\nInsurance is a very handy tool if you have a partnership business. You can take insurance on your partner’s life, so that if he\/she passes, the company can use that money from the claim to make up for the loss of the deceased partner. The money can also be given to the nominees of the deceased’s family, this way they do not have to give them a share in the company.<\/p>\n
\u00a07. Regular Income:<\/strong><\/h3>\n![\"Regular](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/Regular-income.jpg\")
<\/a><\/div>\nApart from your basic cover, insurance also provides you with regular income. So if the insured passes away, the family members will get the death claim as well as regular income will be provided to the family. This way the family can use the claim for the immediate expenses and the regular income for their monthly expenses.<\/p>\n
8. Sometimes It Can Be Too Late:<\/strong><\/h3>\n
<\/a><\/div>\nThis is one of the most common reasons why you need insurance, to cover your financial loss. Your family will be so devastated at the time of your death, that they will not be able to think straight. This insurance cover will help them get back on their feet and also cover the immediate expenses that come along the way. This way, you can save your family the trouble of not worrying about their financial needs.<\/p>\n
2. Tax Benefits:<\/strong><\/h3>\n<\/div>\n<\/a><\/div>\n<\/div>\nSome people buy insurance to obtain the tax deductions available to them. The best thing about life insurance is that their maturity claim as well as the death claim are both tax free. Even the premium amount is available for deduction under section 80C. The premium claimed can be, up to a maximum amount of Rs. 150000\/-, since that is the limit under section 80C. \u00a0After having said that, do not buy any insurance just to claim this deduction. If you are going to buy insurance for this reason, then you might as well buy a policy that will attend to your needs.<\/p>\n
3. Financing Your Debt:<\/strong><\/h3>\n<\/div>\n<\/a><\/div>\n<\/div>\nNow I’m sure you do not want your family to carry the burden of paying off your liabilities. So if you have got your other goals covered through various investments, then get your liabilities covered through insurance. For example, you’ve taken a house loan, and you still have half the amount to pay back, take an insurance cover for that amount, so even if you are not there, your family will have the finances to pay off the loan.<\/p>\n
Must Read: Why Should You Start Investing Early In The Life Insurance?<\/a><\/p>\n4. Sort Your Education And Retirement:<\/strong><\/h3>\n<\/div>\n<\/a><\/div>\n<\/div>\nLife insurance just doesn’t mean insurance for your life only. It also provides cover for your income. For retirement, annuity is a very good option to consider. After investing in an annuity, you will receive a regular income till your survival. So if you haven’t considered this option, I think it’s time you do.<\/p>\n
As for your education, there are education plans offered by the insurance companies for your children, so that in case of an unfortunate event, your child’s education will not be compromised in the bargain.<\/p>\n
5. Earlier The Cheaper:<\/strong><\/h3>\n<\/div>\n<\/div>\nThe earlier you buy a life insurance cover, the cheaper it is for you. While you are still young, there is a very low chance of you getting diagnosed with various diseases. So it’s always better to take insurance earlier, so you do not have to spend much when it comes to premium payment, it will be affordable.<\/p>\n
6. Insure Your Business:<\/strong><\/h3>\n<\/div>\n<\/a><\/div>\nInsurance is a very handy tool if you have a partnership business. You can take insurance on your partner’s life, so that if he\/she passes, the company can use that money from the claim to make up for the loss of the deceased partner. The money can also be given to the nominees of the deceased’s family, this way they do not have to give them a share in the company.<\/p>\n
\u00a07. Regular Income:<\/strong><\/h3>\n<\/a><\/div>\nApart from your basic cover, insurance also provides you with regular income. So if the insured passes away, the family members will get the death claim as well as regular income will be provided to the family. This way the family can use the claim for the immediate expenses and the regular income for their monthly expenses.<\/p>\n
8. Sometimes It Can Be Too Late:<\/strong><\/h3>\n
<\/a><\/div>\nSome people buy insurance to obtain the tax deductions available to them. The best thing about life insurance is that their maturity claim as well as the death claim are both tax free. Even the premium amount is available for deduction under section 80C. The premium claimed can be, up to a maximum amount of Rs. 150000\/-, since that is the limit under section 80C. \u00a0After having said that, do not buy any insurance just to claim this deduction. If you are going to buy insurance for this reason, then you might as well buy a policy that will attend to your needs.<\/p>\n
3. Financing Your Debt:<\/strong><\/h3>\n<\/div>\n<\/a><\/div>\n<\/div>\nNow I’m sure you do not want your family to carry the burden of paying off your liabilities. So if you have got your other goals covered through various investments, then get your liabilities covered through insurance. For example, you’ve taken a house loan, and you still have half the amount to pay back, take an insurance cover for that amount, so even if you are not there, your family will have the finances to pay off the loan.<\/p>\n
Must Read: Why Should You Start Investing Early In The Life Insurance?<\/a><\/p>\n4. Sort Your Education And Retirement:<\/strong><\/h3>\n<\/div>\n<\/a><\/div>\n<\/div>\nLife insurance just doesn’t mean insurance for your life only. It also provides cover for your income. For retirement, annuity is a very good option to consider. After investing in an annuity, you will receive a regular income till your survival. So if you haven’t considered this option, I think it’s time you do.<\/p>\n
As for your education, there are education plans offered by the insurance companies for your children, so that in case of an unfortunate event, your child’s education will not be compromised in the bargain.<\/p>\n
5. Earlier The Cheaper:<\/strong><\/h3>\n<\/div>\n<\/div>\nThe earlier you buy a life insurance cover, the cheaper it is for you. While you are still young, there is a very low chance of you getting diagnosed with various diseases. So it’s always better to take insurance earlier, so you do not have to spend much when it comes to premium payment, it will be affordable.<\/p>\n
6. Insure Your Business:<\/strong><\/h3>\n<\/div>\n<\/a><\/div>\nInsurance is a very handy tool if you have a partnership business. You can take insurance on your partner’s life, so that if he\/she passes, the company can use that money from the claim to make up for the loss of the deceased partner. The money can also be given to the nominees of the deceased’s family, this way they do not have to give them a share in the company.<\/p>\n
\u00a07. Regular Income:<\/strong><\/h3>\n<\/a><\/div>\nApart from your basic cover, insurance also provides you with regular income. So if the insured passes away, the family members will get the death claim as well as regular income will be provided to the family. This way the family can use the claim for the immediate expenses and the regular income for their monthly expenses.<\/p>\n
8. Sometimes It Can Be Too Late:<\/strong><\/h3>\n
<\/a><\/div>\nNow I’m sure you do not want your family to carry the burden of paying off your liabilities. So if you have got your other goals covered through various investments, then get your liabilities covered through insurance. For example, you’ve taken a house loan, and you still have half the amount to pay back, take an insurance cover for that amount, so even if you are not there, your family will have the finances to pay off the loan.<\/p>\n
Must Read: Why Should You Start Investing Early In The Life Insurance?<\/a><\/p>\n Life insurance just doesn’t mean insurance for your life only. It also provides cover for your income. For retirement, annuity is a very good option to consider. After investing in an annuity, you will receive a regular income till your survival. So if you haven’t considered this option, I think it’s time you do.<\/p>\n As for your education, there are education plans offered by the insurance companies for your children, so that in case of an unfortunate event, your child’s education will not be compromised in the bargain.<\/p>\n The earlier you buy a life insurance cover, the cheaper it is for you. While you are still young, there is a very low chance of you getting diagnosed with various diseases. So it’s always better to take insurance earlier, so you do not have to spend much when it comes to premium payment, it will be affordable.<\/p>\n Insurance is a very handy tool if you have a partnership business. You can take insurance on your partner’s life, so that if he\/she passes, the company can use that money from the claim to make up for the loss of the deceased partner. The money can also be given to the nominees of the deceased’s family, this way they do not have to give them a share in the company.<\/p>\n Apart from your basic cover, insurance also provides you with regular income. So if the insured passes away, the family members will get the death claim as well as regular income will be provided to the family. This way the family can use the claim for the immediate expenses and the regular income for their monthly expenses.<\/p>\n4. Sort Your Education And Retirement:<\/strong><\/h3>\n
<\/a><\/div>\n5. Earlier The Cheaper:<\/strong><\/h3>\n
<\/div>\n6. Insure Your Business:<\/strong><\/h3>\n
<\/a><\/div>\n\u00a07. Regular Income:<\/strong><\/h3>\n
<\/a><\/div>\n8. Sometimes It Can Be Too Late:<\/strong><\/h3>\n
![\"Sometimes\"](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/Sometimes.jpg\")
<\/a><\/div>\n![\"Back](\"https:\/\/fintoo.in\/blog\/wp-content\/uploads\/2020\/06\/Back-up.jpg\")
<\/div>\n