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Is Life Insurance a Smart Investment

A lot of people debate whether they should invest in life insurance or not. Read on to know more about why investing in life insurance is a smart decision.

 

life insurance is an investment that every person must have in their portfolio. It helps in securing your family’s future. When a policyholder with a term life insurance passes away during the term, their family receives an assured sum. Without you, your family can be in a lot of trouble. The financial assistance that life insurance gives will help them in hard times.

You can plan the goals for your future when your family is completely secured. It can help your family by giving them death benefit or pay you an amount after the completion of the maturity period. Most people know about term insurance policies which give assured sum if the policyholder dies during the term. However, other life insurance policies can earn you money too.

Life insurance can be purchased for more than financial security. It can be a wealth-creation instrument as well. For many, life insurance is a security that protects their family or can help them after retirement. It can be purchased for different goals for you and your family’s future.

If the policyholder meets with their demise while paying off a home loan, then life insurance can give financial help to the family to finish the debt. Another benefit is a secured retirement. A policyholder can invest an amount in a retirement plan to gain an assured sum when they retire.

Life insurance is good for people who have long-term plans, such as buying a home after retirement. With life insurance, a policyholder can make a dream come true. Another benefit of life insurance is the tax benefit. Many insurance policies help in saving taxes. If the policyholder decides to invest early, then they can receive more benefits because of their age.

Some of the insurance policies that can be an investment instrument are-

  • Endowment Policies

Unlike term life insurance, where the family receives death benefits, endowment policies give the policyholder returns after the maturity of the policy. If the policyholder passes away during the term, their family will get the assured sum.

  • ULIP

ULIP or Unit-Linked Insurance Plan is a policy that gives insurance and grows wealth at the same time. When you invest in ULIP, a part of your money will go for life insurance while the other part will go for investments such as debt, equity, etc.

  • Child Insurance Policies

With an insurance policy for a child, the policyholder can secure their future even if they pass away during the term. With child insurance plans, you will receive bonuses. Normally, the plans give an assured sum to the policyholder. If the policyholder dies during the term, then the amount goes to the family.

You don’t need to have insurance as security for your family. Even you can get the benefits of life insurance when you invest in it. Life insurance can give you protection and help you grow your wealth as well. You must know insurance policies can give you returns and secure you and your family at the same time.

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