Benefits of Life Insurance
Financial Security: It reduces the financial constraints that arise from lack of money due to the unfortunate death of a family member.
Long-Term Savings: It can help in making corpus for a new home, schooling of a child, and child’s marriage expenses.
Tax Benefit: You need to pay a premium to keep the policy activated, hence you can get a tax benefit as per the income slab.
Tax-free Payout: Income from Life insurance is tax-deductible you don’t have to report your money while filing your tax returns.
Final Expenses: Your beneficiaries can use that money for burial expenses without having to dip their savings.
Retirement Savings: After the policy period expires, then you can pay your bills, rent, and other expenses with the money you get from the company.
With the final note, don’t buy a policy from any source always take it from a trusted source, and most importantly, don’t go for equity investment or any other investment first took life insurance with the money you have then if the balance permit goes for other investment.
What is Life Insurance? – Definition, Types, and Benefits
Earlier, Insurance looks very very different than what it looks like today. From the time of ancient Rome, there is some practice that, there was a ‘burial club’ that covers the cost of members’ funeral expenses. The earliest known life insurance policy was made in London where a company insured ‘William Gybbons’ by the contract of 400 pounds if he dies within one year. The sale of Life Insurance began in 1760 in the US where the poor and distressed widows were insured. Later it started in different countries.