Everyone knows the importance of life insurance and don’t even want to think about death. lots of us ignore the fact of what would happen if anyone died suddenly without the proper protection. There are some valid reasons to have life insurance.
- It’s part of a financial plan
inadequate coverage has serious effects on many families. Life insurance helps with planning for your loved ones’ long-term health and happiness, providing you with peace of mind that your loved ones are financially protected.
You need life insurance just like your savings account if someone would deal financially when you die. That money from the policy’s death can help your family with their financial needs like funeral costs, daily living expenses and college funding.
- It’s inexpensive
Many people think that life insurance is very expensive or very complex, but in reality, life insurance is affordable and a lot better convenient than you think.
- Provide for Your Kids
A life insurance policy ensures that your children can complete their college studies, buy a home and can also pay for their wedding if you die unexpectedly.
- Protect your business
irrespective of whether you are using a life insurance policy to assure a key employee, fund a buy/sell agreement or easily deliver a tax-free cash extract, life insurance can be a large asset to your business.
- Supplement Your Retirement
Permanent life insurance policies assemble a cash value during the term of the policy that can be borrowed against tax-free. These policies can be used to complement your retirement if your other investments fail.
Life insurance can also maximize a pension by complimenting a living spouse’s income.
- Pay Off Debts
A life insurance policy can repay any debts that you leave behind that may be a trouble for your family. Debts like a mortgage, credit cards, car loans, and even your funeral expenses can have a striking impact on your family and their lifestyle.
- Tax benefits under Section 80C
Premiums paid toward all life insurance policies are eligible for tax benefits under Section 80C. This deduction can be claimed for premiums paid towards:
- insuring self
- dependent children and
- any member of the Hindu Undivided Family.
- If the policy is issued on or prior to March 31, 2012:
Annual premium up to a maximum of 20% of the sum assured becomes tax-deductible.
- Insurance policies issued on or after April 1, 2012:
Annual premium up to a maximum of 10% of the sum assured is tax-deductible.
- Insurance policies issued on or after the 1st day of April 2013:
it is for insurance on the life of any person, who is—
(a) a person with a disability or a person with severe disability as referred to in section 80U, or
(b) suffering from disease or ailment as specified in the rules made under section 80DDB,
Annual premium up to a maximum of 15% of the sum assured is tax-deductible
Where Can I Get Life Insurance?
At Tachotax an independent agent can help you get your Life insurance in the right way. Here you can access your specific risks and financial goals before recommending a policy.
Start protecting your loved ones today, connect with us now!