Benefits of Insurance
Insurance schemes are advantageous to individuals seeking to safeguard their loved ones, possessions, and personal well-being against potential fiscal hazards and liabilities. In light of the current uncertain times, insurance has become an increasingly necessary financial tool. It is imperative to assess your financial situation thoroughly, to identify the most suitable insurance plan that aligns with your future financial needs.
Insurance offers a plethora of options and benefits:
- Protects against liabilities – Insurance plans offer comprehensive coverage for medical emergencies, hospitalization, illnesses, and future medical care expenses, providing financial stability during uncertain times.
- Protects dependents – In the event of an unfortunate demise of the primary breadwinner, insurance plans can cover the financial loss to the family, allowing them to repay any outstanding debts like home loans, ensuring their financial well-being.
- Protects your family’s financial security – Insurance plans secure your family’s standard of living, providing a lump-sum payout to cover household expenses in case of death, accident, or medical emergencies of the policyholder, providing them with much-needed financial respite.
- Ensures your child’s future – Insurance plans ensure your child’s bright future by offering financial security for their education and allowing them to pursue their aspirations without compromising, even when you are not there to support them.
- Protects your home – Insurance safeguards your home by providing coverage against unforeseen calamities or damages, paying for repair or rebuilding costs, or replacement of valuables or items inside the house, ensuring your peace of mind.
- Helps with long term goals – Life insurance offers a valuable opportunity for individuals to save and accumulate wealth over the long term. By availing this policy, policyholders can allocate funds towards long-term goals, such as purchasing a home, initiating a business venture, securing funds for their child’s education or wedding, and so on.
- Useful for retirement planning – Life insurance can be an effective tool for retirement planning, providing you with the ability to maintain financial independence during your golden years. An annuity plan, for example, can offer a steady income stream for life, while minimizing your risk exposure. With the security of this low-risk plan, you can enjoy a comfortable lifestyle, meet medical expenses, and fulfill your post-retirement aspirations without financial worries.
- Provides tax benefits – Life insurance offers the dual advantage of securing your financial future while providing tax benefits. The premium payments made under the policy can be claimed as tax deductions under Section 80C of The Income Tax Act, 1961, up to a maximum of ₹ 1.5 lakh per annum, subject to certain conditions. This tax deduction can result in significant annual tax savings of up to ₹ 46,800/-. Additionally, the proceeds received under the policy are exempt from tax* under Section 10(10D) of the Income Tax Act, 1961, subject to certain conditions. Thus, investing in life insurance can be a prudent choice for individuals seeking to safeguard their financial interests while reducing their tax burden.
Life Insurance
Life insurance is a prudent tool that provides financial security to your loved ones in the unfortunate event of your untimely demise during the policy term. The most elementary type of life insurance is term insurance, which offers a simple and straightforward payout structure to beneficiaries. This lump sum amount, disbursed to the policyholder’s dependents, can serve as a crucial safety net to cover various expenses and help maintain their standard of living.
Health Insurance
Health insurance refers to a type of financial product that is acquired to provide coverage for a broad range of medical expenses, such as hospitalization, treatments, and other health-related issues. Such insurance policies prove to be of great utility in the event of unexpected medical emergencies. Furthermore, these policies offer the added benefit of a cashless facility, which can be availed of across a vast network of hospitals that are affiliated with the insurance provider.
Ideally, one should have a personal Health cover over and above company provided Health Insurance
Child Plans
Child plans refer to financial products that serve as savings instruments, designed to accumulate a substantial corpus of funds that can be utilized towards financing the higher education of children. These policies are structured such that the life assured is that of the child or the beneficiary who shall receive the funds, while the parents assume the role of policy owners. By securing a child plan, parents can ensure that they are financially prepared to meet the high costs of quality education in the future.
Home Insurance
Home insurance is a type of financial product that provides coverage against a wide range of perils and hazards, including accidents, mishaps, natural disasters, and other similar unforeseen events, that may result in damages to the insured property. Such insurance policies serve as a reliable safeguard for homeowners, protecting them from the financial burdens that may arise due to unforeseen property damage.
Auto Insurance
Auto insurance pertains to a category of insurance products that are tailored to cover vehicles, such as cars and bikes. These policies provide comprehensive protection against a range of risks, including natural disasters, damages to third parties, as well as losses or damages incurred by the policyholder’s vehicle due to mishaps and accidents.
