Life insurance doesn’t only give you protection benefit but, it also comes with several other benefits. A life insurance is not only a protection plan but also a tax-saving wealth creating instrument. However, before buying a life insurance, your priority should not be an investment but it should be protected.

Here are some reasons to buy a life insurance plan.

Secure your finances

It helps you secure your finances during any miss-happenings. The insurance plans come up with survival benefit where you can get good returns on the premium paid to the maturity of the plan.

Tax Saving Tool

A policy taken under the life insurance can help you claim a maximum deduction of Rs. 1.5 lakh under section 80C of I-T act, any bonus or sum received under the life insurance policy will enable you tax exemption under section 10(10D) of the Income tax act.

Wealth Creation

A person can create wealth by using insurance. Insurance plans like unit liked insurance plan not only help in getting protection but also help in generating a good corpus for the future financial goals. The sum insured also acts as a security against which you can get a loan from banks

Diversification of liability

When you take a home loan you have the liability to repay the loan amount over 15-20 years or more. It goes in the form of monthly instalments. Imagine a scenario when something happens to the payee of the home loan in case of the joint-home loan? Having an insurance plan helps in limiting the liability if something happens to you or your spouse. In such a case, the loan amount can still be paid if something happens to the insurer.

Gives a safety net to your family

If you are the sole bread earner in your family then taking an insurance plan is a must. It gives a protection to those dependent on you. It provides a cushion against your financial liabilities before making any investments or taking loans for your financial goals. Experts advise taking a term insurance plan at an early stage of life because it will give a bigger cover by paying a small premium for it