Life is often full of various financial goals and expenses. However, when it comes to financial planning, everyone wants the same thing – to ensure a safer and brighter future for themselves and their loved ones.
Life insurance policies are one way to go about financial planning. As you get older, the need for a life insurance policy keeps increasing. It is often the ideal way to invest in your future. In addition, it can provide you and your family with a financial safety net.
Wealth Creation and Savings with Life Insurance Policies
People buy life insurance for various reasons. For example, some purchase them for their coverage, some need recurring medical treatments, or some want a life cover to support their dependents financially.
Wealth creation is a core factor here. Different investment plans will help you acquire wealth at different rates. Usually, the higher the risk, the higher the return rates earned over the long term. Tata AIA life insurance provides insurance cum investment plans that offer these benefits.
However, if you are looking for assured returns, then savings insurance plans with guaranteed returns are another option. Life insurance companies like Tata AIA offer savings plans with life cover that offer assured returns upon maturity.
Along with life cover, savings and wealth creation, these plans also offer tax deductions and benefits that reduce income tax liability — another reason for people to buy life insurance.
Benefits Of Life Insurance And How They Address Your Financial Needs
Including a life insurance policy under your portfolio can do wonders for your long-term financial plans. The plans can be as minimal or as lavish as you want them to be. You get the final say over your insurance plans.
Here are some key benefits of getting a life insurance policy:
It Can Help With Long Term Financial Goals
With any long-term financial goal, it is best to start planning early. Life insurance plans bought early in life can cost less than the ones bought later. Financial goals like buying a house, or a car, investing in your child’s education and saving for retirement are all covered by life insurance policies.
The best life insurance plans can help you manage your debts and aid in planning for your retirement.
Income Replacement – Life Covers And Retirement Plans
Life covers offer a financial security net for family members in the event of the policyholder’s untimely demise. They involve you paying a set premium to your insurer regularly and your family gets the sum assured. This also includes any additional benefits provided under the plan.
Retirement plans and pension plans are other popular types of life insurance people commonly opt for. These provide people with a regular income stream once they mature to support them during their retirement years.
Tax Benefits And Exemptions
Life insurance can be a valuable tool to save on taxes. It’s one of the main reasons many people opt for them
The premiums you pay on your life insurance can make you eligible for tax benefits and deductions under Section 80C. In some cases, the proceeds can even be tax-exempt under Section 10D.
Most life insurance policies also provide add-ons for a higher premium. These can be used to customise your life insurance plan so that you can enjoy additional benefits and some extra coverage.
It’s important to discuss with your insurer the add-ons available for your investment plan. These can provide more coverage options for specific expenses and can save you a lot of money in the long term.
As you can see, life insurance can offer a lot of benefits. They can be used to plan for long-term goals, your retirement, or for short-term purposes. So investing in different investment plans will allow you to maximise their benefits and secure your future.