The best strategy to build wealth and protect the future of the family in the event of the policyholder’s untimely passing is through life insurance. The advantages of life insurance can be accessed through either “Term Plans,” which offer life insurance for the protection of families, or “Investment Plans,” which offer financial security to satisfy the financial aspirations of individuals. with assistance in building riches.
A Life Insurance Policy’s Important Features –
A life insurance policy has numerous features in addition to just covering costs.
Death Benefit – Should the life assured unexpectedly pass away while the policy is still in effect, the nominee will get an amount assured known as the death benefit, which will enable your dependents fulfil their financial obligations and satisfy their daily necessities. will assist in doing.
Investment opportunity – Life insurance can function as an investment opportunity if one choose to invest in ULIPs, money back plans, or endowment plans because these plans offer the benefits of both life insurance and investments. These plans also give returns on investments.
Investment in a life insurance policy can provide income tax benefits under Sections 80C and 10(10D) of the Income Tax Act of 1961.
Maturity Benefit – Depending on the type of life insurance policy, there may be a maturity benefit at the conclusion of the policy term, provided the life assured survives the whole policy period.
Collateral for a loan – Some life insurance plans provide loans secured by the policy, which can assist borrowers in covering short-term expenses like emergency medical care or debt repayment.