Why Life Insurance Polices Are Necessary?

Why Life Insurance Polices Are Necessary?

By Mr. Arijit Basu, SBI Life Insurance.

As we sit down to plan our finances, one of the dilemmas we face is whether we need life insurance or not.

More often than not, we tend to delay the need of life insurance in our lives, thinking we have all the time in the world to make that decision.

We usually hesitate to put our money into products where we do not see an immediate return on investment, hence look towards short-term investment plans.

But, it is extremely important to do asset allocation and not have all the eggs in the same basket.

Therefore, life insurance should be a part of your investment portfolio as it plays an important role in building a better and safe future for you and your family.

Life insurance is a powerful financial tool with a wealth of benefits for you and your loved ones.

Arijit Basu, MD & CEO, SBI Life Insurance

It not only gives financial security, but also keeps you stress-free from life’s uncertainties.

Here are some of the compelling reasons to start investing in life insurance and making it a part of your conscious financial decision making.

An adequate life insurance policy helps you to pursue your goals in life by providing an assurance that your family will never be deprived of anything, even when you are not around.

The most important aspect of life insurance is the security it provides to your family in case of any eventuality. So it is very rightly said: “You can not buy love, but you can ensure that you take care of your loved ones and shoulder your responsibilities towards your family.”

Risk! What does that mean..!?

There is a prevalent misconception amongst many that life insurance is not a financial instrument that gives healthy returns. But, a healthy and prudent mix of financial portfolio, which includes adequate life insurance, actually improves the overall performance of your portfolio.

It not only benefits you at the time of any eventuality, but also gives good returns on investments, not to forget the improved credit rating that helps you during making future investments as well planning.

Besides, by using life insurance policy, you not only repay your loans but also use your policy to draw loan against it. Inclusion of life insurance in your financial portfolio creates a secured financial pool for your family.

Save your taxes..!

As you are aware, in a few months time you will have to submit your tax returns and a life insurance policy is a good way of saving tax. Under section 80C of the I-T Act, investment in life insurance products offer tax deductions on premium payments.

And it is more affordable and achievable than we think. 

No matter at what stage you are in, there is a life insurance cover that will help you sail through the journey of life - whether you are looking to protect your family, provide world-class education to your children or about to begin life after retirement.

Life insurance can definitely help you realise your goals and dreams as a wide range of products and plans are available to cater to your needs.

Understanding life insurance plans in their entirety will surprise you -- both for their affordability & the security they offer.

However, you must remember that life insurance products are difficult to understand. So it is advisable that you take help from a financial planner before buying a policy.

There is a thumb rule for any long-term planning - earlier you start, better it is. 

If you have not taken a life insurance cover yet, now is the time to get one done.

About the author

The writer Arijit Basu is MD & CEO, SBI Life Insurance.

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