Life is valuable, so are life insurance plans. Anyone who knows the value of life will understand the crucial role that life insurance holds in one’s life. If anything happens to you in the future, life insurance assures your family and loved ones in financial aspects.

We all know that with the Covid-19 threat, life is more unpredictable than ever. As much as one is urged to take the vaccine for the disease, it is just as vital to convince one to sign up for a life insurance plan as a backup plan. All the assets and properties that you have earned in your lifetime are not as secure as a life insurance plan because, once you register for an insurance policy, the benefits are guaranteed, unlike land and money assets that could be lost due to the many adverse circumstances in life.

Despite the substantial benefits and the security that life insurance plans contribute, based on the type of insurance policy plan, the costs are reasonably inexpensive, especially the plans offered by Canara HSBC Oriental Bank of Commerce Life Insurance. Underestimating the importance of life insurance can be one of the notable mistakes that one can make in life. The following are a few important points to consider while thinking about why life insurance is important.

1) Life insurance plans provide additional time

In case of an unexpected death of a breadwinner in the family, life insurance provides sufficient funds so that the family can get through any difficulties that they may face. The amount granted will allow the family members to get through the difficult period of grieving and decision-making about supporting their family further without a financial problem.

2) Supports your children educational needs

In the absence of any property assets that you can pass down to your kids as heritage, life insurance works as the best alternative to provide your children with the required funds. This will benefit them in their educational journey in the event of your demise. Additionally, it will ensure a smooth educational experience for your children without any gaps in academic years. This will set an example for your heirs to do the same for their children so that they can benefit from life insurance plans during any sudden events of life.

3) Additional support in case of illness or accidents

Life insurance plans provide financial aid not only in the events of death but also during cases of ailment and accidents. That is a practice that very few know. With the ongoing pandemic, the sickness in a family member is quite common. If the person who supports the financial needs of the family is affected by a disease or an accident, then there is a significant decrease in income. This is one of the main reasons why life insurance is important. It provides additional income that helps the family regain its financial status until the illness or injury is cured/treated.  

4) Provides mental peace

We have already established how uncertain life is. You may as well live out your life with peace of mind. Life insurance plans cover an enormous amount to be given to your immediate family in case of your death; this amount will provide you with an assurance that they are taken care of no matter what happens to you at any point in life. It will enable your loved ones to get through difficult times with the fund you left behind.  

5) Income after retirement!

If you live throughout the life insurance plans, it allows you to avail the gains of the policy at once. As these plans take many years to mature, the amount that you will collect is substantial. These funds could help you to live out your old age without worrying about income after you retire. Any debts made or the instalments that are due can also be cleared off with this amount which will help you attain a stress-free life. 

6) To gain tax benefits

The life insurance plans offer you not only security for your financial net but also allow you to avail tax benefits. Following the 80C section of the Income Tax Act, any amount paid for the life insurance policies is spared from the total taxable amounts. This proposal will allow you to save on tax charges while also receiving the benefits of life insurance. Additionally, the funds received after the policy matures or in the event of deaths are omitted from tax calculations. Due to this, these funds can be used freely without any further processing.

7) Security for your loved ones

Despite the major advancements in the medical field, the life expectancy of humans is reduced by ten years since the past decade. This decrease further pushes the uncertainty of life that adds to the reasons why life insurance is important. Applying for a life insurance policy will not only enable you to guard your family but also leaves them with a certain guarantee that economic factors are taken care of by you.

Along with the policy on your name, taking up life insurance on the handles of your loved ones will ensure additional protection. This action also helps to spice up the quantity that your family will receive after the maturity of the plan significantly. 

Just like how getting a vaccination for the Covid-19 virus provides you with a 90% assurance that you will not be infected by the disease, taking up a life insurance policy will equip you with a 99% guarantee that the financial crisis of your family is averted. Decisions on the type of life insurance to be considered depending on the following factors.

  • The number of people you intend to support.
  • The funds that are required for your heir’s education.
  • An amount that you can afford to pay either monthly, daily, or as required by the bank to keep the policy active. 

If you are still worried about committing to long-term insurance plans, there is always a choice for you to withdraw payment. You can avail benefits that you have gained till the date at which you choose to cancel the policy without any hassle. It is the 21st century where you need not bother about any problems or fraud activities as you can check and estimate your payment average online and contact the customer service team at Canara HSBC Oriental Bank of Commerce Life Insurance anytime.

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