Why is Life Insurance Beneficial For You?

Life insurance is a MUST have for all. In some cases, it is mandatory. Especially if you’re doing a risky job like – driving, working on a high platform, oil rig, mining or any similar fields where the high risk factors are involved.

From the first look, you can find numbers of benefits of life insurance like – protecting your family’s future and tax benefit (in some countries). But believe it or not, apart from them there are many beneficial factors are involved with life insurance. 

To understand the benefits of life insurance, first of all, you must know the types of the life insurance. Usually, life insurance can be classified under two main categories. They are – investment based and protection policy based. The name suggests, investment based insurance gives you the opportunity to invest along with your life insurance, whereas, in personal coverage, it only comes with insurance and its features. Apart from them, several companies added new features into life insurance. For example – in investment-based insurance, you’ll find, endowment, pension policy, group life insurance, unit linked insurance plan, with profit life insurance policy and many others. If we take a closer look on the life insurance, we’ll find, life insurance further classified under two more categories based on their coverage time – term based and permanent life insurance. Apart from them, another kind of life insurance recently comes into the market called – universal life coverage. It is actually a combination of – term based and permanent life insurance.  

However, here are some hidden benefits of the life insurance that is equally comes with your insurance when you buy it –

Goal-based Savings – you invest in several financial sectors like – stocks, bonds, ETFs (Exchange Traded Funds), or mutual funds, but all of them are asset appreciation. Usually they take lots of legal involvement and takes time to liquidate. Whereas, the investment based investment gives you the opportunity to earn periodically cash back after certain intervals. You can use them as a goal based saving tool. Additionally, you can use the money for your asset protection.  

Protection Against Health Expenses – medical expenses increasing day by day, and a common man can’t prepare a huge medical contingency fund for health risks. Life insurance comes with medical benefits. So, you can take advantage of it and stay protected against medical expenses.

Financial Instrument For All Stages – life insurances are highly flexible and designed for all ages. As we know, our financial risks and requirements are changing according to our age. For example – when you’re young, you need to invest systematically in wealth creation in a safe manner, whereas, after marriage, you need a couple life insurance protections. After a couple of years, when you have a kid, you need financial support for your kid’s education. After 15 years, you need an endowment benefit – and surprisingly, you can get all the benefits from your life insurance.

Investment-based life insurance can give you assured, risk free income after specific time frame. So, choose your life insurance carefully and get the complete benefit of your life insurance. Keep in mind that, “as early as you can” – is the golden rule of any insurance. So, don’t be late and buy your life insurance as soon as possible.