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3 Reasons Why Getting a Life Insurance Policy is a Smart Choice

To ensure that your family enjoys the same kind of lifestyle, even in your absence, you must invest in or buy a life insurance policy. This life insurance cover offers financial security to your family in the event of your unfortunate demise, against an affordable monthly premium. Getting a life insurance policy is not mandatory, but it offers a host of benefits to your loved ones. You can choose between a term life insurance policy, an ULIP, a Child Plan or a Pension Plan for yourself. Once you have taken a life insurance policy, make sure you renew it regularly to ensure that you financially protect your family or child.

Often, you may buy life insurance and forget to renew it, which erases all the advantages that you or your family may have enjoyed. So, before you buy life insurance policy, check the renewal terms and processes. Select a policy that makes renewal easy, such as the Life Insurance Policy from Bajaj Finserv, to avoid going through medical tests again and enjoy affordable premiums and an easy online renewal procedure.

Here are the 3 reasons why a life insurance cover is a smart investment decision.

Secure your and your family’s financial future

Life is known for risk and uncertainty, and can bring unforeseen expenses. Therefore, the right life insurance cover can help you secure your family’s future financially, help you prepare for retirement with a Pension Plan, help your family pay off debts or loans after your demise or when you care unable to earn due to critical illness. It can also help you pay for your child’s education with specific plans like a Child Plan. Ultimately, a life insurance policy helps you get mental peace and help you family enjoy financial stability.

Finance your long-term goals

When you choose a policy like a Unit Linked Insurance Plan or ULIP, you can make use of the long-term investments in equity and debt. This can help you achieve your goals such as buying a car, buying a home or in planning your retirement. One of the unique advantages of ULIP is your family can continue to invest even after your demise, unlike other investments.

Get tax benefits

Whether you depend on a monthly salary or have your own business, planning your investments and expenses to eliminate tour tax burden is an essential activity. As per the provisions of the Income Tax Act, a life insurance policy can help save on your taxes.

Under Section 80C, the sum assured up to 10% is deductible from your taxable income and under Section 80D, you can claim deduction for the amount of premium you pay for your life insurance cover.

The reasons mentioned above are sure to make you realise the importance of a insurance policy. However, before you sign up for one, check and compare the best life insurance plans in India and select the type that suits you most. To get started, check pre-approved insurance offer from Bajaj Finserv to benefit from a customised deal, an affordable premium, and a hassle-free application.