Why Life Insurance Polices Are Necessary?
By Mr. Arijit Basu, SBI Life Insurance.
As we sit down to plan our finances, one of the
dilemmas we face is whether we need life insurance or not.
More often than not, we tend to delay the need of
life insurance in our lives, thinking we have all the time in the world to make
that decision.
We usually hesitate to put our money into
products where we do not see an immediate return on investment, hence look
towards short-term investment plans.
But, it is extremely important to do asset
allocation and not have all the eggs in the same basket.
Therefore, life insurance should be a part of
your investment portfolio as it plays an important role in building a better
and safe future for you and your family.
Life insurance is a powerful financial tool with
a wealth of benefits for you and your loved ones.
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| Arijit Basu, MD & CEO, SBI Life Insurance |
It not only gives financial security, but also
keeps you stress-free from life’s uncertainties.
Here are some of the compelling reasons to start
investing in life insurance and making it a part of your conscious financial
decision making.
An adequate life insurance policy helps you to
pursue your goals in life by providing an assurance that your family will never
be deprived of anything, even when you are not around.
The most important aspect of life insurance is
the security it provides to your family in case of any eventuality. So it is
very rightly said: “You can not buy love, but you can ensure that you take care
of your loved ones and shoulder your responsibilities towards your family.”
Risk! What does that mean..!?
There is a prevalent misconception amongst many
that life insurance is not a financial instrument that gives healthy returns.
But, a healthy and prudent mix of financial portfolio, which includes adequate
life insurance, actually improves the overall performance of your portfolio.
It not only benefits you at the time of any
eventuality, but also gives good returns on investments, not to forget the
improved credit rating that helps you during making future investments as well
planning.
Besides, by using life insurance policy, you not only
repay your loans but also use your policy to draw loan against it. Inclusion of
life insurance in your financial portfolio creates a secured financial pool for
your family.
Save your taxes..!
As you are aware, in a few months time you will
have to submit your tax returns and a life insurance policy is a good way of
saving tax. Under section 80C of the I-T Act, investment in life insurance
products offer tax deductions on premium payments.
And it is more affordable and achievable than we
think.
No matter at what stage you are in, there is a life insurance cover that
will help you sail through the journey of life - whether you are looking to
protect your family, provide world-class education to your children or about to
begin life after retirement.
Life insurance can definitely help you realise
your goals and dreams as a wide range of products and plans are available to
cater to your needs.
Understanding life insurance plans in their
entirety will surprise you -- both for their affordability & the security
they offer.
However, you must remember that life insurance
products are difficult to understand. So it is advisable that you take help
from a financial planner before buying a policy.
There is a thumb rule for any long-term planning
- earlier you start, better it is.
If you have not taken a life insurance cover
yet, now is the time to get one done.
About the author
The writer Arijit Basu is MD & CEO, SBI Life Insurance.
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