Should you invest in Life Insurance?
There is a need for investing in Life insurance right from the word go. Going by stats, the Insurance sector is India grows around 15% every year in terms of premium collected. Yet, only 1.5% of the Global premium is collected in India. These numbers show that the Insurance coverage in India is relatively very low.
Why Invest in Life Insurance?
Life Insurance policies not only ensure the safety and security of your loved ones but also provide for their bright future. Loss of life is irrecoverable, but the financial security of your family should also be considered in case of untimely death. One must own life insurance to ensure a better future of your near and dear ones because life is uncertain.
Other benefits-:
- Avail Tax deduction under section 80C
- Prevent any kind of burden of Loan repayment
- Some plans offer regular income
Life insurance Investment tips-:
- START INVESTING AT A YOUNG AGE- Life insurance plans are way cheaper when you invest in them at a young age. It is also relatively easy to get a life insurance policy issued if you are young and healthy.
- PLAN FOR RETIREMENT- A right insurance plan can help you to save more and get regular returns during your retirement.
- ALWAYS CHOOSE COMPREHENSIVE COVER- One must opt for a full-fledged plan and could also go for additional riders such as protection against critical diseases.
- LEAD A HEALTHY LIFESTYLE- People who don’t smoke and lead a healthy lifestyle have to pay a lesser premium.
- OPT FOR ANNUAL PREMIUM PAYMENT- It is approximately 8% cheaper than other modes like monthly or quarterly payments.
Consider the above principles before buying Life Insurance
Written by- Yogesh Bansal
Great Lakes Institute of Management
