You might seen people who have their life insurance and are paying a substantial amount to the premium. So what is life insurance policy and does it really work? Yes, it definitely works but let’s understand what Awareness About Policies In Our Life, life insurance is and its benefits in detail.
Awareness About Policies In Our Life is like an agreement between you and the policy holder who will pay a lump sum amount in the event of your downfall. In return, you pay premiums for a fixed period of time to secure the future of your family.
Awareness About Policies In Our Life helps you get a life cover and also create wealth for the long-term. There are various kinds of insurance policies available as per your financial requirements like term insurance, endowment plan, money-back insurance policy and many more.
Now that you know the meaning of life insurance, let’s take a look at some of its benefits:
Benefits of Life Insurance:
1. Risk Coverage
In case you pass away, the beneficiary of the policy will get a lump sum amount to secure their future, eliminating the need to be dependent on money.
2. Tax Benefit
The premiums paid towards insurance can be claimed for income tax deductions under Section 80C of Income Tax Act, 1961. This reduces your taxable income, aiding you to obtain a life cover instead.
3. Loan Option
The insurance policy companies allow you to get a loan against your policy if you need. It has lower interest rates comparing to a personal loan and is much quicker in terms of processing. The option is available on selected policies.
4 . Health Cover
Life insurances also cover expenses related to illnesses or hospitalization, eliminating you from the burden of medical bills.
5 . Variety of Policies
There are several varieties of insurance policies available to helping you secure your future. You can choose a type of policy depending on your needs and purpose.
This option enables you to add extra perks to your policy. The rider options can cover critical illnesses, disability, waiver of premium, accidental death benefit and much more.