Do you know which investments offer you multiple arrays of benefits?
Insurance is the investment which not only manages your financial risks, but it also offers various other benefits.
When the life is about several contingencies, managing the manageable risks is a prudent decision.
Like our food is not only about nourishment, it is also about taste, satisfaction, happiness, Insurance policies are not only about the risk management. It offers several other benefits which many readers might not be aware.
Here is a list of all i.e. basic and additional, benefits investment in insurance policies offer.
- Life Risk:
Yes, this is the primary purpose of investing in life insurance policy. It protects the family of the insured against the financial havoc in case of the sudden death of the income earning insured.
This is the reason adequate life insurance policy should be the number one investment priority.
Risk management is vital than the return on investments. The psychological comfort life insurance policy gives to the family is unparalleled to any other forms of investments.
- Health Risk:
The benefit of the health insurance policy in times of growing lifestyle diseases and increasing cost of healthcare facilities is undoubted.
The Govt of India’s mega health insurance plan Ayushman Bharat speaks volume of the necessity and benefits of health insurance policy.
Having an adequate health insurance policy covering all the members of the family offer mental comfort and when the occasion arises it offers financial comfort.
Usually, these policies mature when the insured is close to his retirement age or is already retired.
Lumpsum money received in bulk boost retirement corpus. Though Term Policy benefits are only in case the insured dies during the policy tenures, endowments and ULIP plans offer cash value. On maturity, the fund corpus is given back to the insured.
So, it acts as life insurance and if the insured survives the policy term, it can act as retirement planning.
- Tax Benefits:
Maturity proceeds or death benefits received under the Life Insurance policy are tax-free. Even maturity of ULIP plans is tax-free with certain basic conditions.
If the premium paid is less than 10% of the policy amount, maturity proceeds are tax-free.
This way ULIPs offer tax-free returns as well as insurance benefits. This makes it one of the best-suited tax planning investments.
- Financial Emergency:
Loan against Life Insurance Policy is non-returnable. The outstanding loan amount is deducted from the maturity proceeds.
There are two benefits: One, in the case of a financial emergency you can get a loan against the policy and second, no need to repay the loan if the financial emergency continues.
This is another unique benefit of Life Insurance Policy.
- Life Events:
Like retirement, Life Insurance maturity proceeds are useful during the important life events like higher education and marriage of your children.
The maturity of this long-term investment comes handy during the important life events.
The uniqueness of Life Insurance investment is its financial risk management element and because of its long-term nature, it can give comfort during important life events when money is a critical need.
- Build Wealth:
There are other investment instruments which offer higher returns than insurance policies. However, investors are regular and meticulous about their life insurance premium payment and that makes life insurance a preferred and disciple investment option.
Long-term, regular disciplined investment is the key to wealth building.
“Building wealth is a marathon, not a sprint. Discipline is the key ingredient.” Dave Ramsey
These range of benefits, make the life insurance and the health insurance investments two of the finest and most sought-after investments. It makes the investors worry free on various counts mentioned above.
Insurance is all in one kind of investment. It is safe, offers protection, handy during various life events, and builds wealth.
So next time you think about insurance thinks about its multiple gamuts of benefits for you and your family.
You may also like to read: A Customer Focussed Life Insurance Plan – Zindagi Plus