Importance of Life Insurance: Why should you invest in it?

Investing in a life insurance policy ensures your family’s financial stability. There are policies such as ULIPs that enable investment opportunities in both loan and equity sectors. According to experts, a life insurance policy typically has a lock-in period of 5 years. Moreover, it offers an option of choosing a tenure lasting up to 30 years for long-term investment opportunities. 

What are the benefits?

Various life insurance policies offer various benefits. Young people just starting their professional journey have the opportunity to opt for higher insurance coverage without incurring higher premiums. It is recommended to invest in a life insurance at the earliest opportunity possible. It gives a sense of relief, knowing that your family will be taken care of financially, regardless of what the future holds. 

Monetary benefits from a life insurance plan can aid your family in clearing any debts in the event of your untimely demise. It helps in giving freedom from financial burden. Moreover, the amount received can also be dedicated to your children’s education.

Tax exemptions

Furthermore, these life insurance policies can also be used for tax-saving purposes. Life insurance policies offer tax benefits of up to Rs 1.5 lakh annually under Section 80C of the Income Tax Act. This advantage makes them an attractive option for tax planning. 

Deduction in premiums

Under Section 80C of the Income Tax Act, investors can avail tax benefits on health premiums. This includes a deduction of up to Rs 25,000 for premiums paid for self, spouse, and children. And an additional deduction of up to Rs 25,000 for premiums paid for parent’s health insurance policies.