Buying insurance is one of the most important financial decisions. But most of the people are not insured. People don’t understand the importance of buying the insurance. You cannot predict your future. It is not in your hand what’s going to happen with you in the future. Most of the people die due to the premature death and accidents every year. If you are the sole breadwinner in your family then it becomes devastating for your family members after your death to live a basic standard life. There are several reasons why buying insurance is important, some of them are-
Secure future of your loved ones- This is the most important aspect of insurance. If your family is totally dependent on you and if you pass away then if you don’t want to them to bow down in front of others, insurance is the best option.
Long-term goals- It also helps you in achieving your long-term goals like buying your own home, car and some after retirement plans. It also gives you different options of investment through different policies. So that you can invest your money according to yourself.
Handling of debt–You can also manage to pay your lifelong debts if you buy right policy at the right time. You can pay any kind of long-term loans in a particular span of time with the effective use of insurance.
It supplements your retirement goals- Buying of right kind of insurance at the right time of your life helps you to lead a financially strong life after the retirement. Investment of money on the annual basis come back to you as a kind of pension.
Tax saving process- You can save taxes on insurance policies irrespective of what kind of plan you buy. Under section 803 the premium you pay on the insurance policies is eligible for the maximum tax benefit of Rs. 1.5 lakh.
Tool for saving- It forces you to save money on monthly or annual basis because you have to pay the premium for the insurance policy. This drives you to save a lot of money.
Peace of mind- You all know that death is unavoidable. But one thing which you can do for your family is to secure their financial future by buying some type of insurance. It is not the subject of discussion that how big or small plan you are buying for them. At least you have done all you can to help them tied over difficult times.
Insurance is a great tool for protection as well as helpful in saving your and your family’s future in a disciplined manner. It’s better if you can buy it at your younger days for best outcomes. The most important benefit of buying insurance is that you can buy expensive traders insurance as well as cheap traders insurance depending upon the requirements.