Why Life Insurance should not be an option but a MUST-HAVE investment?

As the statistics indicate, for someone being the only provider, it can be completely devastating for a family if they were to lose them.

Having life insurance can keep you secured and comfortable in most of your health and financial decisions. (Image: PTI)

New Delhi: Life Insurance is one investment instrument that the past generation heartily invested in. Most of us can see LIC receipts in black wooden boxes. You might be wondering why should you buy it? Is it so essential to have a life cover when you have better returns on other investment options? Well, having life insurance can keep you secured and comfortable in most of your health and financial decisions. As the statistics indicate, for someone being the only provider, it can be completely devastating for a family if they were to lose them. A sudden demise of a loved one not just impacts the family emotionally but would affect their ability to compensate expenses, debts, and overall, their lifestyle. It goes without saying, that it is your job to ensure that your family’s future is placed in right hands. Given below are the vital points why you must buy a life insurance sooner than later: 1 Family Comes First: There are people who depend on you financially. This includes your spouse and children and even your parents. Family is what you are majorly responsible for. Their protection and security matters even if after you are dead and gone. This is where the play of life insurance becomes more relevant and significant in making the right choice. Be it for maintaining the financial ground for your spouse, or paying for education, and other important matters. Life insurance can indeed be a life saver after your life. 2 Debts: Debts can be really frustrating, and so quite difficult to get over with, especially during a crisis. The amount of stacked up bills, and financial liabilities are huge burdens. But if you happen to have the right kind of life insurance, any of your major liabilities like home loan, etc could be easily handled. 3 Means to an End: The very purpose of life insurance is to keep you in saving mode for a long term thereby piling a good investment, while covering risk of loss of life. A life insurance helps creating a good money corpus for you to relish in your retirement or before (if you take life insurance in your twenties). 4. Invest Early: The young brigade seems to think that life insurance is for old people, not for young, and healthy ones. But this is not always the case. As a young person, buying a life insurance can be a smart move, as it costs less for coverage when you are independent and can give you the ability to plan an early retirement or create more wealth with the benefits of compounding. 5. Tax Savings: Insurance policies can be helpful in saving taxes to an effect. The Income Tax Act, 1961, makes you eligible for tax exemption, as on the basis of premium you pay on an insurance policy, you can claim upto a sum of Rs 1.5 lakh under Section 80C. The proceeds upon death/maturity are tax-free too.