What is the most important thing in your whole life?
Think hard before you answer this question. Some will answer their car, some their home, some their partners; and a quite a few will remember their parents. Whatever your answer may be, the right answer is always: family.
We work hard, day in and out so that our loved ones can eat to their fill and be content. That sight is perhaps what drives each of us. And to ensure their contentment stays even if something were to happen to us, we buy a life insurance policy. It’s the insurance that everybody should buy, and that too, as early as possible. Why early? Here’s the answer.
1. You can afford it
Insurance companies see your age as a measuring tool while fixing your premium. A young customer is seen as a low-risk liability. Her/his chances of getting a serious disease or demise are lower as compared to an older person. Therefore, the premiums are set low and the insurance policy is affordable.
2. Your Family has a longer cover
Most life plans have a coverage period that extends into your sixties. That is an extensive time period. One wherein if anything happened to you, your family would receive a lump sum payment. This is a worry off your shoulders.
3. You can save on tax
While securing your family’s financial future is a priority, a little bit of tax savings is always welcome. Under Section 80C of the Income Tax Act, you can claim deductions up to INR 1.5 lakh for life insurance premium payment. And the death-benefit your family receives, that’s tax-free as well under Section 10(10)D of the Income Tax Act, subject to certain conditions.
When you are buying a life plan, make sure you choose the best life insurance company. One that cares about you and not the bottom line; yes, such companies still exist. All you need to do is search hard.