Is Life Insurance Necessary?
Risks and uncertainties are part of life’s great adventure — accident, illness, theft, natural disaster – they’re all built into the working of the Universe, waiting to happen, this where life insurance comes into picture.What is life insurance? Life Insurance is an agreement that guarantees payment of a stated amount of monetary benefits at the end of a specified term or on the death of the life insured. Life Insurance provides for financial security in the event of death or on the inability to earn due to physical disabilities. Taking out life insurance responsibly can help you live the life you want to and protect your family after you’re gone. Without life insurance many people would be left destitute in the event of an unexpected disaster. Besides providing for financial security in the case of one’s untimely death, it can be used to accumul hr consultants ate a kitty for your old age, systematically build assets, for funding your child’s education and also for saving on taxes. Let us study the roles of life insurance in detail:Role 1: Life insurance as an ?investment? Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns.
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