The gift of life is valuable, and you cannot put a money tag on it. But one requires money to lead their life and complete the family’s necessities. If there is an unexpected death blow to the breadwinner, the family might face problems. Hence, to assure the family’s correct livelihood even after the head earner’s death, investing in a life insurance policy is often recommended.
What Is A Life Insurance Policy?
Wondering about the definition of life insurance? A life insurance policy is predominantly a contract between a particular and an insurance provider, where the company vouches to pay a fixed amount of money to the family or beneficiary of the individual in return for daily payments over some time. These payments are acknowledged as premiums and are usually paid annually or half-yearly. The individual who purchases the insurance is known as the policyholder.
Life insurance guarantees an aggregate amount to be paid to the family if the policyholder dies unexpectedly. Though money cannot fabricate the loss, it can make sure of no financial hitch to the family even after the sad death of the breadwinner.
Benefits Of Life Insurance
Here are some of the advantages of life insurance:-
- Tax benefits
Registering for a life insurance policy can guarantee you tax advantages. The premiums you pay towards the policy make you entitled to tax exemptions of up to ₹1.5 lakhs of your taxable income under Section 80C of the Income Tax Act. The demise advantages are also fully tax-excused under Section 10(10)D of the ITA.
- Guarantee of fixed returns
Life insurance policies guarantee you a settled amount after a fixed timeline. You require to go through the structure of various life insurance products. Read through various life insurance products’ structures and terms and conditions to choose a policy that best applies to your needs.
Disclaimer “Insurance service will be provided by ANGEL FINANCIAL ADVISORS PVT. LTD.”