Benefits of Life Insurance (300 Words) | Benefits of Life Insurance – Need for Life Insurance

Benefits of Life Insurance

  • Life Insurance allows long-term savings since payments can be made effortlessly because of the ‘easy installment’ facility built into the scheme.
  • The Salary Saving Scheme (SSS) is ideal for any institution or establishment subject to specified terms and conditions.
  • Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax.
  • Tax rebate is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assesses can also avail of provisions in the law for tax relief.
  • In the case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value.
  • A life insurance policy is also generally accepted as security, even for a commercial loan.
  • Life insurance encourages ‘thrift’.
  • Savings through life insurance guarantee full protection against the risk of death of the saver.
  • In case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable).
  • A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time to time.
  • Children’s education, start-in-life or marriage provision, or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies.
  • Policy money can be made available at the time of one’s retirement from service and used for any specific purpose, such as the purchase of a house or for other investments.
  • Loans are granted to policyholders for house building or for the purchase of flats (subject to certain conditions).

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